Southwest Airlines Stock Sinks After Q1 Results Miss, Guidance Cut [Video]

Shares of Southwest Airlines (LUV) slumped to their lowest level this year Thursday as the carrier posted worse-than-expected quarterly results, cut its guidance, and took steps to save money as its growth was hampered by problems with deliveries of Boeing (BA) aircraft. 

The airline reported an adjusted first-quarter loss of $0.36 per share, wider than forecasts. While total operating revenue was up 10.9% year-over-year to $6.33 billion, that was also worse than estimates.

Chief Executive Officer (CEO) Bob Jordan said that achieving the company’s financial goals “is an immediate imperative.” He added that Southwest has “already taken swift action to address our financial underperformance and adjust for revised aircraft delivery expectations.”

Among the steps underway were a limit on hiring and the ending of operations in four cities: Bellingham International Airport in Washington state, Cozumel International Airport in Mexico, George Bush Intercontinental Airport in Houston, and Syracuse Hancock International Airport in New …