Airline News

Dallas-based Southwest Airlines cuts out flights to 4 airports from roster

Southwest Airlines

DALLAS (AP) — Southwest Airlines will limit hiring and stop flying to four airports as it copes with weak financial results and delays in getting new planes from Boeing.

Both Southwest and American Airlines reported first-quarter losses Thursday. Demand for travel remains strong, including among business flyers, but airlines are dealing with higher labor costs, and delays in aircraft deliveries are limiting their ability to add more flights.

Southwest said it lost $231 million. CEO Robert Jordan said the airline was reacting quickly “to address our financial underperformance," including by slowing down hiring and asking employees to take time off.

The Dallas-based carrier said it expects to end this year with 2,000 fewer employees than it had at the start of the year.

Southwest will also stop flying to four airports: Cozumel, Mexico; Syracuse, New York; Bellingham, Washington; and George Bush Intercontinental Airport in Houston, where the airline’s major operation is at smaller Hobby Airport.

The closures will help the airline focus on more profitable locations and deploy a fleet of planes that will be smaller than it had planned. Southwest said it expects to get only 20 new 737 Max 8 jets from Boeing this year, down from the 46 it expected just a few weeks ago. It will offset some of the shortage by retiring fewer planes.

Boeing is struggling with slower production since a door plug blew out of an Alaska Airlines Max 9 in January, and that is frustrating its airline customers.

Dallas-based Southwest said that its loss, after excluding special items, was 36 cents per share. That was slightly worse than the loss of 34 cents per share that Wall Street expected.

Revenue rose to $6.33 billion, below analysts' forecast of $6.42 billion.

American said it lost $312 million as labor costs rose 18%, or nearly $600 million. The airline said it expects to return to profitability in the second quarter — a busier time for travel — and post earnings between $1.15 and $1.45 per share. Analysts expect $1.15 per share, according to a FactSet survey.

The first-quarter loss amounted to 34 cents per share excluding special items, which was worse than the loss of 27 cents per share forecast by analysts. Revenue was $12.57 billion.
CEO Robert Isom said American is less impacted by Boeing's problems because the airline had already received hundreds of new planes in recent years. American has ordered Boeing Max 10s, a larger model that has not yet been certified by the Federal Aviation Administration, but those planes are not due to start showing up until 2028.

“If they don't get it together, we have also made sure that we're protected,” Isom told CNBC. He stopped short of saying American would switch Boeing orders to rival Airbus, saying only, “We'll take care of it.”

In premarket trading, Southwest shares were down 9% while American shares were up 3%.

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Best of the South

Southern Living lauds Hill Country hotspot among best towns in the South

Photo by Steve Rawls

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The famous German Hill Country town of Fredericksburg is getting the spotlight as a must-visit destination in Southern Living's 2026 South's Best Awards.

Fredericksburg claimed the coveted No. 3 spot in the publication's ranking of the Best Small Towns in the South.

The annual awards are determined through third-party online surveys of Southern Living consumers from July 9 to September 9, 2025. Over 17,000 respondents rated their favorite places across the South, the report said.

The top two best small Southern towns were St. Augustine, Florida (No. 1), and St. Simons Island/Golden Isles, Georgia (No. 2).

Specifically, Southern Living gave a nod to Fredericksburg's growth and the recent addition of The Albert Hotel, which opened in 2025. The Albert Hotel was ranked the 10th best new hotel in 2026.

"The city’s premier full-service luxury hotel revives a cluster of 19th-century landmarks, from a historic saloon to a former pharmacy that is now a cafe, deli, and artisan market," the report said. "Alongside the 105 minimalist guest rooms, a holistic spa and a limestone pool provide moments of quiet relaxation."

We all need a relaxing day poolside at the Albert Hotel pool oasis.Photo by Chase Daniels

As the Fredericksburg area grows, Southern Living said, it still maintains its cozy, small-town feel.

"Fredericksburg still wears its German heritage on its sleeve, evident throughout Main Street architecture and a lively cluster of biergartens and long-running seasonal festivals," Southern Living wrote. "Wine lovers will feel particularly at home thanks to more than 100 wineries and tasting rooms scattered throughout town and the surrounding countryside."

It's no wonder Southern Living decided to locate its 2026 Idea House there.

Popular events like the Fredericksburg Food & Wine Festival and locally focused programs like the Texas Hill Country Wineries wine passports draw in crowds from all parts of Texas. The town is about a five-hour drive from downtown Dallas, which makes it a great weekend or spring break escape. North Texas travelers might even spot small patches of bluebonnets during their road trip through the Hill Country.

No matter which route you take, travelers should make a pit stop through another small Texas town called Marble Falls, which is home to one of Southern Living's most legendary Southern restaurants: Blue Bonnet Cafe. According to the report, its longstanding staff members embody the idea of "southern hospitality" every day.

"There’s one real reason the Blue Bonnet Cafe is so widely respected: The folks who run the place have been holding this small-town diner to high standards for years," the report said.

Blue Bonnet Cafe opened in 1929 and was later bought by the Kemper family in 1981, who still own and operate it today. Southern Living recommends ordering one of the blue plate specials, and a slice of pie is a mandatory treat.

"With 15 options — from luxuriously creamy to bright and fruity — you’re guaranteed to find one you’ll love," the report said.

Blue Bonnet Cafe in Marble Falls, Texas Ordering a slice of pie is a requirement, not a suggestion.Blue Bonnet Cafe - Marble Falls, TX/Facebook

The only other Texas destination to earn recognition in Southern Living's annual awards was the iconic Franklin Barbecue in Austin, which was crowned the best barbecue joint in Texas by the publication's readers.

"Fans from around the world queue up for hours to experience the craftsmanship that has made Franklin a barbecue celebrity," the report said. "Flawless prime-grade brisket with a sweet, tangy glaze is still the showstopper here, and it’s accompanied by the quintessential Central Texas lineup of pork ribs, turkey, and jalapeño-Cheddar sausage."

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