Southwest Airlines Cuts 15% of Corporate Staff, Affecting 1,750 Jobs, and More

Dear Readers,

Welcome to the AviationOutlook Newsletter.

Your One-Stop source for the most relevant Aviation news briefs and industry insights (MINUS noise).

✅ 1 Email Daily ✅ 5 Min Read ✅ 0 Time Wasted

🫵 YOU become industry-smart!

Here are the 10 Top Aviation Industry Updates for you today.Let’s get started.

Southwest Breaks 53-Year No-Layoff Streak With 15% Corporate Staff Layoff

Southwest Airlines has announced its first mass layoffs in 53 years, cutting 1,750 corporate positions (15% of its corporate workforce) as part of a major restructuring plan.

This move comes as we just discussed yesterday about potential merger speculations with JetBlue, Spirit, or Breeze Airways, sparked by a union leader's social media poll last week.

The layoffs will primarily impact corporate overhead and leadership positions, including eleven senior management roles.

Key Points

• Cuts target corporate overhead and leadership positions, including 11 senior executives at VP level or above

• Expected savings of $210 million in 2025 and $300 million in 2026, with one-time charges of $60-80 million for severance

• Layoffs start in April 2025, with most completions by June

• Affected employees will continue receiving salary and benefits without needing to report to work

• The cuts will not affect operational staff like pilots, flight attendants, or ground crew

• CEO Bob Jordan calls it a "monumental shift" toward becoming "leaner, faster, and more agile"

• The stock rose over 2% in premarket trading following the announcement but is down 0.23% today, and it's down 9.44% YTD. The airline's stock has declined by 46.54% in the last 5 years

• Southwest is under intense pressure from activist investor Elliott Investment Management, which took a $1.9 billion stake in June 2024

• This follows earlier cost-cutting measures from November 2024, when buyouts were offered to airport workers

What It Means

The unprecedented layoffs mark a dramatic shift from Southwest's employee-first culture to a more profit-focused approach. The move clearly shows the growing influence of activist investors in reshaping legacy airlines.

While the merger rumors persist, the move suggests more strategic changes ahead.

Keep posted for more updates about Southwest as it happens.

Other Key Aviation Industry Updates for Today 👇

2. A350F Launch Pushed Back As Supply Chain Woes Continue

Airbus plans to delay its A350 freighter launch by up to a year, with entry into service now expected in 2027 instead of 2026.

The delay stems from ongoing supply chain issues, particularly with Spirit AeroSystems, which is struggling to deliver fuselage parts.

This setback affects Airbus's plans to increase A350 production beyond six aircraft per month through 2025.

The company currently has 63 A350F orders from various airlines and is expected to officially announce the delay during its annual results presentation on February 20, 2025.

3. Trump Administration Cuts Hundreds of FAA Technical Staff

The Trump administration fired hundreds of FAA probationary employees through late-night emails on February 14, 2025, just weeks after a fatal DC crash that killed 67 people.

The layoffs affect nearly 300 workers, including maintenance mechanics, safety specialists, and technical staff.

The move, part of a broader federal workforce reduction overseen by Elon Musk's Department of Government Efficiency, has drawn criticism from lawmakers who warn about increased safety risks due to an already understaffed system.

4. Delta Flight 4819 Flips Upside Down, Yet Everyone Walks Away

A Delta flight from Minneapolis flipped upside down while landing at Toronto Pearson Airport during a heavy wind on February 17, 2025.

All 80 passengers and crew survived, with 21 people hospitalized for non-life-threatening injuries.

The CRJ900 aircraft, operated by Endeavor Air, flipped upside down amid 40 mph wind gusts.

Emergency crews quickly responded, extinguishing flames as passengers evacuated the inverted plane.

Here's a video showing the exact moment Flight 4819 crashed and flipped:

5. Volocopter's eVTOLs Finds French Partner Despite Financial Troubles

French helicopter operator Jet Systems has agreed to purchase two VoloCity eVTOL aircraft from Volocopter, despite the German manufacturer's recent bankruptcy filing in December 2024.

Operations will begin in Paris, where established flight routes are already approved.

The partnership will later expand to southwest and southeast France, building on Jet Systems' existing helicopter network that serves 15,000 passengers annually.

The deal depends on Volocopter securing EASA certification, with 75% of audits currently completed.

6. Middle East Carriers Plan Hundreds of New Aircraft Orders

Major Middle Eastern airlines are launching a significant fleet expansion, with Flydubai seeking 200 narrowbody jets plus 100 options, Etihad negotiating for 40 widebody aircraft, and Qatar Airways planning to order 230 twin-aisle planes.

Gulf Air is discussing a dozen widebody jets, while Riyadh Air aims for 50 long-range aircraft.

This buying surge follows a quiet 2024 and positions the Middle East as a key growth driver for Boeing and Airbus.

7. TU Delft Welcomes First 3D Printing Giant to Aerospace Innovation Hub

Materialise establishes its Aerospace Competence Center at TU Delft's Aerospace Innovation Hub, becoming the first Additive Manufacturing (AM) company in this Dutch aerospace hub.

The company, which has produced over 500,000 aerospace parts to date, joins industry leaders like Airbus and Collins Aerospace.

The center will focus on advancing AM applications in aviation, leveraging Materialise's EASA certification and EN 9100 manufacturing capabilities while collaborating with students and researchers on sustainable aviation projects.

8. Virgin Australia Gets Green Light for Qatar Airways Alliance

Australia's competition watchdog has proposed approving a five-year alliance between Virgin Australia and Qatar Airways.

The partnership includes 28 weekly return flights between Doha and four Australian cities using Qatar's aircraft and crew.

The deal awaits final regulatory approval, including Qatar's pending 25% stake purchase in Virgin from Bain Capital.

ACCC Commissioner Anna Brakey notes the alliance will enhance flight options, connectivity, and loyalty benefits for consumers.

9. VR System Enhances ERJ145 Pilot Training

CommuteAir has integrated Visionary Training Resources' FlightDeckToGo VR system into its pilot training program as of February 2025.

The technology allows new pilots to practice ERJ145 cockpit procedures and flows from any location.

The airline issues VR headsets during initial training weeks, supplementing traditional methods.

The system features virtual instructor guidance and eye-tracking capabilities, with CommuteAir planning to train over 200 pilots annually using this technology.

10. Infosys and Lufthansa Unite for New Aviation Tech Hub

Infosys and Lufthansa Group announced a strategic partnership to establish a Global Capability Center in Bengaluru, India, as part of a $300 million IT contract.

The center will develop AI-powered aviation solutions using Infosys Topaz and Cobalt Airline Cloud platforms, focusing on flight navigation, network design, and aircraft operations.

The collaboration aims to enhance Lufthansa's digital transformation while providing software support for over 350 external airline customers.