• Newark airport faces ongoing travel chaos amid ATC issues and runway construction.
• It's unlikely the problems will subside anytime soon, with United forced to axe 35 daily flights.
• Experts advise considering alternative airports or other United hubs to avoid disruptions.

A week of compounding crises at New Jersey's Newark Liberty International Airport has some travelers questioning if they should change their travel plans to avoid the airport altogether.

Travel chaos has been ongoing at Newark since April 28, when air traffic issues first forced dozens of delays and more than 100 cancellations. Those delays have now stretched into their second week, disrupting thousands more flights and leaving plane loads of passengers stranded at one of the busiest US airports.

This has ultimately forced United, the airport's biggest airline, to pull 35 daily flights, or about 10% of its Newark schedule, until further notice.

The airport has long dealt with delays caused by a shortage of air traffic control staff. But now, its main runway is closed for construction until at least June, and classic April rain showers have only made things worse.

As of Tuesday afternoon, the trifecta of staffing, construction, and weather had flights inbound to Newark delayed an average of more than four hours — the airport's 9th straight day of issues.

Atmosphere Research Group travel analyst Henry Harteveldt told Business Insider that those stuck in chaos should keep their wits, and those traveling in the near future may want to consider the New York City area's other airports or another United hub.

Avoid Newark or brace for inevitable disruptions

New York's John F. Kennedy International Airport and LaGuardia Airport are the most obvious alternatives to Newark, but Harteveldt said there's also Long Island MacArthur Airport and Westchester Airport in White Plains.

These suburban options are further from the city, and they won't have the same plethora of flight connections. The same goes for LaGuardia, which has a perimeter rule that only allows flights longer than 1,500 miles, like United's flight to Denver, on Saturdays.

NerdWallet travel analyst Sally French told BI to allow plenty of extra time for your connection if Newark is your only option. She added that customers should avoid checking a bag as carry-on only allows for more flexibility to switch flights or airports.

If you want to stick with United but still avoid Newark as a layover, you could travel via United's hubs in Houston, Washington, DC, Denver, and Chicago instead. You could also use these hubs as a connection to LaGuardia if you still need to get to the New York City area, but without the added risk of flying to Newark.

The airline says fees and fare differences are waived for flight changes from May 6 to May 17 for tickets purchased before May 4, so long as the origin and destination cities remain the same, or one of LaGuardia or Philadelphia.

If you need a long-haul international connection, however, Newark may be your only choice, as United doesn't fly to New York-JFK.

Some loyalty customers may prefer to deal with Newark, and Harteveldt said customers should ask to be booked on one of United's partner airlines if their original flight is disrupted.

"If Newark is your only option, gird your loins and pack your patience," Harteveldt said, adding that customers should not vent their frustrations at the airline's employees.

How things got so bad at Newark

It's not uncommon for major airports to experience days of disruptions due to weather and equipment, like the January winter storms or the CrowdStrike fiasco in 2024. When a combination of factors coexist, things can get extra chaotic.

In July 2024, the Federal Aviation Administration moved the ATC arrivals operation that handles Newark from New York to Philadelphia to address staffing issues, though the same problem has appeared regardless of where the traffic flows. Equipment failures at the facility have only added to the backups.

The closure of the airport's busiest runway is expected to last until at least June as planes wait to use alternates.

United CEO Scott Kirby said in a letter to customers on Friday that the compounding problems were exacerbated by 20% of controllers "walking off the job." He added that the facility has been "chronically understaffed for years." It's unlikely things will change anytime soon until capacity is under control.

Kirby urged the government to reclassify Newark as a "Level 3" airport, meaning it would use a slot system to manage capacity by limiting the number of planes that can take off and land at certain times. Both New York-JFK and LaGuardia are slot-controlled.

The Port Authority of New York and New Jersey also blamed the FAA for the chaos, telling BI it has invested billions of dollars to modernize Newark but that those improvements rely on a "fully-staffed and modern federal air traffic system."

"We continue to urge the FAA to address ongoing staffing shortages and accelerate long-overdue technology upgrades that continue to cause delays in the nation's busiest air corridor," a spokesperson said.

The federal government has long tried to get a grip on air traffic control staffing. The FAA said in May 2024 that it was about 3,000 controllers short.

The Trump Administration in February announced an effort to "supercharge" ATC hiring. This includes upping trainee pay, offering up to $15,000 in incentives to new hires, reducing the hiring process by five months, and providing new opportunities to veteran controllers.

• The long-awaited Real ID deadline takes effect on Wednesday, May 7.
• As of April, 81% of flyers were already prepared for the new requirements, the TSA said.
• It's still possible to fly if you don't have a Real ID yet. Here's what airlines are saying.

Are you one of the many Americans still without a Real ID? You can likely still fly, but you should probably plan for security delays, and don't count on your airline for much help.

Business Insider has reached out to 12 of the biggest US airlines about how they plan to manage long waits at security checkpoints or confusion at check-in counters. While they can't help you get around federal ID rules, your ticket may offer free changes if you need to delay your trip.

As of April 11, 81% of flyers were already presenting compliant IDs, the Transportation Security Administration said. That means hundreds of thousands more have not yet upgraded their state driver's license or obtained another form of acceptable federal identification.

No airlines have announced across-the-board flexibility for those who cannot fly or miss their flights due to security delays or Real ID issues. Long DMV lines have been reported in some large cities around the country, but they may shorten after the deadline passes.

Depending on the airline, you can opt to move your flight until after you've secured a new state ID. Luckily, many tickets are now cancellable for credit or changeable with no added fees.

What you can use instead of a Real ID, according to the TSA:

• US passport
• US passport card
• A US Department of Defense ID, including those issued to dependents
• DHS trusted traveler cards (Global Entry, NEXUS, SENTRI, FAST)
• State-issued Enhanced Driver's License or Enhanced ID
• Border crossing card
• Permanent resident card
• An acceptable photo ID issued by a federally recognized Tribal Nation/Indian Tribe, including Enhanced Tribal Cards (ETCs)
• HSPD-12 PIV card
• Foreign government-issued passport
• Canadian provincial driver's license or Indian and Northern Affairs Canada card
• Transportation worker identification credential
• US Citizenship and Immigration Services Employment Authorization Card (I-766)
• US Merchant Mariner Credential
• Veteran Health Identification Card (VHIC)

The TSA said a temporary driver's license is not accepted. It also warned that this list can change at any time and said travelers should check the agency's website before traveling to verify that their form of ID is still accepted.

You can also get through security without an updated ID, but you will need to answer questions like your name and current address to verify your identity. If your identity is confirmed, you can enter the checkpoint, but you could be subject to extra screening.

This has always been the case (as people who have forgotten their wallets have learned the hard way), but the TSA said this will likely cause delays as more passengers require the alternative method.

Here's what airlines have told us so far about what they're doing in anticipation of Wednesday:

Delta Air Lines

"As we do today, Delta people will work on a case-by-case basis to rebook customers who miss flights due to extenuating circumstances once at the airport," the airline told Business Insider.

Avelo Airlines

Budget carrier Avelo Airlines told BI that it cannot offer a waiver for missed flights due to Real ID requirements, as the new rule has been communicated to customers via email for "a while now."

Customers can pay a fare difference to change or cancel their flights for a travel credit.

Southwest Airlines

Southwest referred BI to Airlines for America or the TSA because Real ID is a government-mandated program.

"We have REAL ID reminders on southwest.com, the app, and throughout the booking process," a spokesperson said.

Sun Country Airlines

A Sun Country spokesperson told BI it would not offer flight waivers if travelers arrive without a Real ID and that its standard change and cancellation policies would apply.

Depending on how far out a flight is, changing your Sun Country booking can cost up to $99 per direction, and customers are responsible for any fare difference.

Flights can be canceled for a fee, and balances from qualified changed or canceled bookings will be issued as a future travel credit.

• Major airlines say premium cabins and international demand are key amid economic uncertainty.
• Budget carriers have historically lacked premium seats in favor of cheaper no-frills cabins.
• Frontier, Spirit, and Southwest are all deploying new premium strategies to generate more revenue.

Major airlines continue to prove the importance of premium cabins as budget carriers play catch-up.

First-quarter earnings from American Airlines, Delta Air Lines, and United Airlines showed slowed growth and planned capacity cuts amid economic uncertainty and diminishing demand. Less government travel and fewer US-bound tourists didn't help.

Only one carrier, United, offered any financial guidance for the rest of the year, and warned a recession could cut profits by a third.

One thing all major carriers reporting results so far can agree on is that premium and international demand are helping to keep things afloat, even as share prices crater. That's something budget carriers have only recently begun to invest heavily in.

Without first-class or business seats to offer flyers, Frontier Airlines, Spirit Airlines, and Southwest Airlines have fewer ways to compensate for decreased demand and capacity cuts.

"We anticipate softness in the domestic main cabin to continue," American CFO Devon May said in the airline's Thursday earnings call. "To partially offset this, we expect long-haul, international, and premium bookings to outperform year over year."

Delta and United said economy cabin travelers tend to be more price sensitive and may delay travel plans amid the downturn, while premium economy, business class, and first-class seats are a more resilient and significant portion of their revenue.

New premium strategies announced by a slew of budget airlines last year, like plusher seats and luxury amenities, could help generate more revenue in the long run, but installing them on planes will take time.

Mainline carriers are cashing in on premium demand

All three major carriers reported year-over-year premium revenue growth in their first-quarter earnings. American saw a 3% rise, Delta's was 7%, while United increased by 9.2%.

"I don't think we've ever had premium as a larger percent of our total revenues as we do right now," Delta president Glen Hauenstein said in the airline's April earnings call. "It's sitting very resilient."

Executives attributed this to affluent travelers still willing to pay for premium seats despite the economic environment, especially long-haul flights to Europe and Asia.

They said as much as 75% to 80% of their international revenue originates in the US, and bookings remain strong through the summer compared to the comparatively lower domestic demand.

On the other hand, low-cost airlines' historically all-economy airplanes do not have swanky first or business-class cabins and do not fly long-haul to popular international markets like London and Japan.

Budget carriers' limited revenue streams and lower profit margin offerings make it harder to account for their losses as they cut thousands of flights this year. Mainline flight reductions can be more easily offset.

Budget carriers want a piece of the premium pie

Frontier, Spirit, and Southwest started bucking their historically no-frills trend in 2024. These add-ons come at a cost and would help the budget carriers collect more revenue.

For example, Spirit revamped its premium "Big Front Seat" bundle with more perks like free snacks, alcohol, Wi-Fi, and priority check-in. Frontier added a "business-class-like" cabin where the middle seat is blocked.

Southwest plans to deploy new premium extra legroom and front row seats in 2026. It will also start charging for checked bags in May for the first time in its 50-year history, though loyalty and elite status holders will still keep the perk. Those investments likely won't show up until at least the third-quarter results, analysts said.

"There was a better way to maximize the revenue per square foot in the aircraft, which is the whole game here," Southwest CEO Bob Jordan said in Thursday's earnings call on adding premium seating.

Delta earned $5.4 billion in revenue from its economy seats and $4.7 billion from its premium cabins during the first quarter. That means its premium cabin revenue was equal to 88% of the economy class revenue despite taking up much less real estate inside the plane.

Those are the types of returns the low-cost airlines and their investors hope to get a taste of.

Expected second-quarter revenue from Delta and American ranges from down 2% to up 2%, while Southwest expects flat performance or a decrease of as much as 4% year-over-year.

Frontier's stock is down about 55% year to date, and Southwest is down 21%, outpacing the broader market. Both have pulled their full-year guidance.

Spirit shares will begin trading again on April 29 after the airline emerged from Chapter 11 bankruptcy in March.

• Qantas' historic "kangaroo route" is a prime example of aviation innovation over the past century.
• It dates back to 1934 when tiny biplanes began hopping 12 days between Australia and the UK.
• Project Sunrise will launch the historic trek nonstop come 2027, which will last up to 21 hours.

The business of flying people from point A to point B has evolved over the decades from small rickety prop planes to massive jetliners capable of carrying hundreds of people.

Among the most famous examples of this progress is Qantas' "Kangaroo Route" between Australia and the UK.

Early versions of the over 12,000-mile journey first operated in the mid-1930s, and the route is still going strong today — but it's about to travel even faster.

What was once a 12-day and up-to-31-stop route is set to become a 21-hour nonstop journey by 2027. The Sydney to London flight is poised to become the world's longest route thanks so a specially equipped Airbus A350.

Qantas' International and Freight CEO Cam Wallace told Business Insider the ultra-long-range plane will "unlock the ability to fly nonstop from Australia to anywhere in the world."

The unofficial Kangaroo Route started as an airmail service in 1934.

The first version of the Kangaroo Route was an airmail operation flown by Qantas Empire Airways, where both Qantas and Britain's Imperial Airways each had about half a stake.

In 1934, QEA started flying between Brisbane and Singapore via Darwin, which then connected to England. It was a precursor to today's codesharing partnerships.

Passenger transport began in 1935, and the route took 12 days.

The airmail route quickly morphed into weekly passenger flights in 1935. Qantas flew the leg to Singapore, where travelers connected to London on Imperial.

The series of snaking connections included up to 31 stops, including overnights, across Australia, Asia, the Middle East, and Europe. The trek from Brindisi in Southern Italy to Paris was via train.

The long journey — which was reserved for wealthy flyers as tickets cost £195 one-way (about $15,250, adjusted for inflation) — was still faster than the six-week option by boat.

Flying boats were introduced in 1938 to shave off time.

QAE's Short Empire flying boats were launched in 1938 and cut the flying time by several hours.

The flights were rocky and rough due to turbulence and a lack of weather radar. After the fall of Singapore in 1942, World War II halted the kangaroo service.

A truncated Kangaroo Route was revived in 1943 with the 'Double Sunrise.'

Qantas' modified route connected Australia to England via Ceylon (present-day Sri Lanka) instead of Singapore.

The nonstop Ceylon flight across the Indian Ocean lasted up to 33 hours and is still the longest commercial flight in history by time.

The route used Consolidated PBY Catalina flying boats, followed later by Liberator planes, the latter of which were the first to sport Qantas' kangaroo logo.

Converted war-era bombers took over the re-established route in 1945.

Qantas operated the portion between Australia and Karachi, Pakistan, using Avro 691 Lancastrian aircraft.

Its partner, the British Overseas Airways Corporation, or BOAC — which is an early version of British Airways — took over for the rest of the trip to London. The trek took about 70 hours.

Qantas reverted the Ceylon portion of the route back to Singapore after the war.

Qantas fully took over the route in 1947 and trademarked "Kangaroo Route."

The airline used 29-seat quad-engine Lockheed Constellations to reduce flight time to about 55 hours across seven stops and four total travel days. Tickets were £525 (about $22,600, adjusted for inflation).

"When the Kangaroo Route launched in 1947, it opened a new frontier for aviation," Wallace said.

In 1954, Qantas received its first Super Constellation. These carried more people and further reduced travel time.

Qantas introduced the Boeing 707 in 1959.

Thanks to its more powerful jet engines, Qantas' 707 aircraft could carry up to 90 people and make the trek to London in 27 hours.

It was the first Jet Age aircraft bought by Qantas.

The Boeing 747 cut flying time to less than a day in 1971.

The famous 747 jumbo jet flew from Australia to London via a single stop in Singapore.

From 1979 to 1985, Qantas operated an all-747 fleet, complete with comfortable seats and an exclusive lounge and bar.

The Airbus A380 complemented the 747 beginning in 2008.

The A380 currently flies from Sydney and Melbourne to London, with a stop in Singapore. The route previously went through Dubai.

The mammoth A380 complemented the 747 fleet for decades until the iconic "Queen of the Skies" was officially retired during the pandemic in 2020.

Qantas' Boeing 787-9 Dreamliners began flying nonstop between Perth and London in 2018.

It was the first nonstop passenger service connecting Australia with the UK, but it was only for Perth.

Key destinations in Eastern Australia, like Sydney and Brisbane, still lack nonstop service.

Deep-pocket travelers can experience the famous Kangaroo Route for $30,000 in 2026.

Tour company Captain's Choice is flying a one-off tourist trip in February 2026 to nearly mirror the Kangaroo Route as it was in 1947 — hops included.

Seats start at about $30,000. While Qantas is not pricing or selling any of the tickets, it is operating the Airbus A330 charter plane.

Project Sunrise is expected to launch in 2027 in a full-circle moment for Qantas.

The up-to-21-hour and 10,000-mile flight will officially eliminate the "hop" from the historic Kangaroo Route.

Project Sunrise will include two ultra-long-haul routes using a fleet of purpose-built A350-1000ULRs: Sydney to London and Sydney to New York.

Qantas is introducing new cabins on the A350s.

Qantas's A350 will have just 238 seats and will boast four different cabins — including economy, premium economy, and enclosed business and first-class suites.

The airline announced in late February that the plane would enter final assembly in September, followed by flight testing and delivery in the second half of 2026.

• Southwest could be pushing for more credit card sign-ups by offering cardholders a free checked bag.
• Experts say Southwest could draw more loyalty revenue but also lose some customers to competitors.
• Airlines cash in billions of dollars through their lucrative credit card partnerships.

Southwest Airlines did a complete 180 when it announced the end of its popular "two bags fly free" policy this month — officially undoing much of what made it unique among airlines.

Bags will now cost extra on most tickets, but two key groups will keep the perk: those with high status and people who hold the airline's Rapid Rewards credit cards.

Southwest likely hopes the lure of this freebie— despite the $69 to $149 annual fee for its personal credit cards — will garner more signups and, in turn, a boost in loyalty-related revenue.

In 2024, the program brought in some $2.2 billion, according to regulatory filings, making up about 8% of Southwest's total operating revenue.

It currently has $4.8 billion worth of points on its balance sheet, including those sold for its credit cards, that customers have not yet redeemed.

For years, loyalty programs have grown into a lucrative source of revenue for airlines. Carriers sell miles in bulk to credit card companies, which in turn offer them to customers when they make purchases. Airlines get a portion of the annual fees and a bonus when new users sign up for the co-branded card.

In many cases, they offer free or heavily discounted flights, airport lounge access, priority boarding, access to seat upgrades, and other perks.

With no lounges to dangle as carrots for sign-ups and only nascent plans for extra-legroom front-of-the-plane seats launching in 2026, a free bag is one of the few perks Southwest can offer to potential cardholders (in addition to coveted early-boarding spots and free assigned seats).

And as rising costs eat into airline profits as travel demand appears to be weakening, Southwest is likely chasing a bigger cut of the moneymaking credit card business and a chance to take more "wallet share," as some analysts call it.

Southwest declined to comment when asked about any future plans for its credit cards and potential benefits. But its social media team appeared to be ready to use the new policy to promote credit cards.

In a now-deleted comment on Instagram, Southwest responded to someone who suggested the first checked bag should be free. "Great idea! We'll do that… for our credit card holders," they said, according to screenshots posted online.

Southwest declined to comment about the comment's deletion.

Industry experts say people could flock to Southwest or jump ship

Bloomberg Intelligence analyst George Ferguson told BI that a free bag as a credit card perk could push people into the program and boost loyalty revenue.

"Southwest is becoming more like a full-service carrier," he said. "Part of the grow-up phase is to get a real loyalty program that's going to support the bottom line."

He added that the backlash about bags is likely to be short-lived since Southwest is just aligning itself with the norm of the US airline industry.

"You can complain all day long, but at the end of the day, it's not going to change the environment," he said. Southwest's stock has rallied since the announcement.

Henry Harteveldt, an aviation analyst at Atmosphere Research Group, told BI that Southwest is likely to extend its credit card benefits beyond free flight perks to further attract interest.

But he warned Southwest may struggle to compete against American, Delta, and United, which have more robust networks, premium cabins, and airport lounges.

"A traveler who may have been loyal to Southwest up until now may be more open to flying other airlines — and could sign up for those carriers' credit cards, if they feel they offer compelling value," he said.

Why credit cards are so lucrative to airlines

Airline credit cards can be as lucrative as a carrier's basic business of flying people from A to B.

Delta brought in $7.4 billion, or about 12% of its total operating revenue, through its partnership with American Express in 2024, according to filings. At American, the share was about 11%, and at United about 5%.

The airline loyalty system may seem counterintuitive. "Free" flight redemptions (which can be bought with points) suggest an airline lost potential revenue from that seat.

However, the miles were created out of essentially nothing — meaning the airline doesn't have to put up any actual assets — and the airline received real money from the bank.

Chasing status and points via a membership program or credit card creates loyalty to a brand, so people are more likely to book on a specific airline — further bringing in revenue.

"Having an airline credit card tends to make you a stickier customer," Raymond James analyst Savanthi Syth told BI.

Airlines also rely on customers forgetting about points earned through flying, meaning any potentially redeemed seat is put back into inventory once any accrued points vanish.

Airlines can control the value of their loyalty

Because points are essentially a controllable currency, airlines can change their loyalty systems to maximize their potential earnings.

Delta, for example, adjusted its SkyMiles program in 2023 to be based on dollars spent rather than miles flown. This made earning status more expensive.

Southwest's restructured program may similarly impact customers. Instead of saving their points for flights, loyalty members may find themselves spending them on seat upgrades, or checked bags that that were previously free.

Still, Southwest has one trick up its sleeve: its popular companion pass.

This allows customers to bring a buddy on every flight they take for free, paying only taxes and fees. It's one of the only airlines to offer such a wide-ranging companion pass.

Southwest's credit card promo through March 28 is offering the pass as part of a sign-on bonus — making the perk temporarily more attainable. The pass usually requires customers to earn 135,000 points or take 100 one-way flights in a single year.

Credit card spending and bonuses can help customers more quickly earn the popular companion pass — which offers among the best value in the industry — and potentially give Southwest a competitive edge over other carriers.

Only time will tell how the bet pays off.

• Southwest Airlines has been known for its affordable flights and fun personality since 1971.
• The airline laid off 15% of its headquarters staff in February, the first mass layoff in company history.
• Some current and former employees fear recent changes at the airline could kill its storied company culture.

Southwest Airlines has long billed itself as different from other carriers — but after the company's first-ever round of major layoffs, some employees say they worry it'll soon just become like every other airline.

Some of the teams affected by layoffs in February — the airline's only mass layoff since it started flying in 1971 — helped maintain a free-spirited culture that saw flight attendants singing announcements, gate agents putting up balloons, and employees making a music video called "Just Plane Fun," which promoted Southwest's lighthearted approach.

The company also thinned the ranks of its training staff — and greatly trimmed this year's internship program. Also gone: Its decades-old corporate rallies where leaders aimed to pump up the staff.

"The love is dead," one current Southwest headquarters employee told Business Insider. The person didn't want to give their name because they weren't authorized to speak to the press, but BI is aware of their identity.

How an activist firm helped upend Southwest

The changes come after nearly a year of upheaval at Southwest, during which time an activist investor bought a large stake in the airline and agitated for an operational revamp to cut costs and increase profitability.

Already, Southwest has given in to one of the most visible things that made it unique: its open-seating policy. Starting in the first half of next year, customers will get seat assignments like on any other airline.

The airline also relented on its one-class-fits-all cabin. It's embarking on an overhaul of its fleet to add premium seating, like those with extra legroom available for purchase — adding a new stream of revenue for the airline.

Now, the latest staff cuts, which saw 1,750 people — or about 15% of Southwest's corporate staff laid off — could mean the slow withering away of the rest of what made Southwest different, some employees say.

Southwest told BI that the airline would still stand out because of its culture, which it said is "woven in the fabric" of its employees.

The airline declined to detail specific department changes. It confirmed that CEO Bob Jordan has asked "all of us at Headquarters to run a leaner organization, and that means evolving the way we approach certain focus areas."

"The strength of Southwest's Culture is critical to the success of our business and our ability to serve our Customers," a spokesperson for the airline told BI in a statement. "The decision to have a reduction in our workforce was extremely difficult and focused almost entirely on Corporate and Leadership positions, but we made every attempt to offer the Employees affected with the care and support they deserve. Our People will continue to be what sets us apart as we drive the Company forward."

One of the teams to see a significant downsizing was the airline's "hospitality" group, the current employee said.

The hospitality team is in charge of tasks like reviewing customer feedback, creating initiatives to make flying Southwest more enjoyable, and hearing from frontline employees.

For instance, the snack cart you sometimes see at a gate during a long delay: That's part of the hospitality team.

Southwest confirmed to BI that its "culture department," which helped plan corporate rallies and other employee- and brand-focused initiatives was also among the teams affected by layoffs.

Aviation expert Henry Harteveldt of Atmosphere Research Group told BI that the layoffs in certain departments could risk eliminating what made Southwest special.

"Culture is what helped distinguish Southwest Airlines, particularly the commitment to its people and how it went about hiring, training, retention, and more," he said.

Southwest could maintain its culture so long as longtime leaders pass down their institutional knowledge, he said

Conor Cunningham, an airline analyst with Melius Research, echoed those sentiments in recent notes to clients, calling Southwest's culture its "special sauce."

"A delicate balance is very much needed here, as culture is difficult to cultivate but easy to ruin," he said.

Customers may see a change from Southwest founder's original vision

Southwest, which launched in Texas, quickly became famous for its cowboy culture, hotpants-wearing flight attendants, and free on-board whiskey.

Charismatic, chain-smoking founder Herb Kelleher once avoided a legal battle by arm-wrestling another company's CEO over rights to the slogan "Just Plane Smart."

Kelleher's unorthodox methods promoted fun for Southwest customers and staff and pushed employees not to take themselves too seriously — and his leadership style inspired Doug Parker, the former CEO of Southwest's home state rival, American Airlines.

"As a younger CEO at industry meetings, I would just do everything I could to just hang around Herb, just to observe and hope I could get some of it through osmosis," Parker told BI in 2019. "He was in tune with what was happening at all levels of his company. And he really cared about it."

One laid-off employee in the technology department told BI they worry Southwest may lose loyal customers who specifically sought out the airline because of its culture and signature policies, like open seating, no-hassle trip changes, and free checked bags.

"I just feel like Southwest is done," the former employee said. "Why would [customers] choose our airline?" The person asked to remain anonymous because they don't want to hurt future hiring prospects, but BI is aware of their identity.

Not everyone has lost hope, though. Another laid-off employee, who asked not to be named for fear of losing their severance, told BI that everyone they interacted with still "maintains the culture to the best of their ability."

Colleen Barrett, a longtime leader alongside Kelleher who died last May, was also key to building Southwest's culture. For decades, she encouraged employees to promote respect, fun, and spirit during work to codify Southwest's people-focused reputation.

"Books have been written about Southwest and its culture," Harteveldt said. To Kelleher and Barrett, "Southwest was more than efficiency and low costs," he said. "They viewed the culture as an asset that made Southwest as a brand more relevant to travelers than competitors."

Elliott's new vision for Southwest

After Barrett's death, Elliott Management, the activist investor, soon announced its stake in Southwest and pushed to shake up the airline. Some employees said they thought Barrett had been the last gatekeeper of old Southwest culture.

The hedge fund said Southwest was leaving opportunities on the table, accusing the airline's leadership of a "stubborn unwillingness to evolve" its business practices, product offerings like the lack of premium seating, and technology infrastructure.

Even though Southwest has failed to turn an annual profit only once since 1973, Elliott noted that the airline's recent earnings were a mere fraction of what they were before the pandemic, while rivals have reported record hauls.

Southwest has also struggled to keep the price of its stock in line with competitors. Over the past year, its shares are down more than 12%, compared to Delta Air Lines, for example, which is up more than 40%

A spokesperson for Elliott Management declined to comment.

Now, with the latest changes — especially the job cuts in core culture-driving groups — there may be no one to stop Southwest from being just another run-of-the-mill US airline, some employees said.

"There's definitely a different culture from here on out," the former technology team member told BI. "I think people are going to realize this isn't Southwest."

The February layoffs come on top of a huge year of changes at Southwest. Consider this timeline:

• May 2024: Barrett dies at 79 after decades of building Southwest's culture.
• June 2024: Elliott Management takes a $1.9 billion stake in Southwest, or about 11% of its shares at the time, making it one of the company's largest shareholders.
• July 2024: Southwest announced the coming addition of premium cabins and an end to its famous open-seating policy.
• October 2024: Southwest names six new board seats, including five recommended by Elliott.
• January 2025: Employee rallies canceled, and Southwest's popular internship program downsized.
• February 2025: Southwest cuts 1,750 corporate employees, including hospitality staff. A day later, Elliott made an agreement with Southwest that would allow it to acquire up to a 19.9% stake.

Of course, Southwest's culture may endure even after the big changes. The company says it's making these changes to save $510 million over the next two years.

Its first red-eye flights and first international partnership took off in mid-February. Assigned seating will begin in the first half of 2026.

• An American Airlines flight collided with a helicopter, raising questions about air traffic control.
• Sen. Tammy Duckworth, a former Black Hawk pilot, said military and civilian pilots usually do not speak directly to each other.
• The FAA faces a shortage of controllers, impacting high-traffic areas like Washington DC.

The crash of an American Airlines flight in Washington, DC, has renewed anxiety about air-traffic control staffing and procedures at US airports, especially in crowded airspaces.

As investigators began to piece together how a military helicopter collided with the regional jet, questions swirled about communication between the pilots and Reagan National Airport's control tower.

Sen. Tammy Duckworth, an ex-Army Black Hawk helicopter pilot, told reporters that military aircraft usually do not talk directly to commercial pilots, as ATC is the responsible intermediary.

"Everybody's listening on the same frequency," she said, adding that the American flight that crashed would have been aware of the Black Hawk helicopter in the skies. "You are listening to instructions from ATC. ATC is telling you what to do."

Duckworth said an FAA briefing involving ATC tapes revealed the helicopter pilots were told about the passenger plane, and the crew confirmed "at least twice" that they had the jet in sight before the crash.

She added that the American flight was cleared to land and would have had the "right of way" and that the Black Hawk was told to pass behind. The flight was in visual flight conditions, meaning the helicopter would be visually searching for the plane.

"They would be looking up to try to find this aircraft, pick it out of the sky as it's coming in for a landing," she said.

According to the Federal Aviation Administration, some military and civil aircraft, if equipped, can talk to each other using specific emergency frequencies. This is usually reserved for distress situations where immediate communication is necessary. It's unclear if the Black Hawk was equipped.

"[The Black Hawk's] flight path should have been hugging the east bank of the Potomac River, so they should not have been within the flight path of that landing aircraft," she said. "Did one of the aircraft stray away latitude, sideways in the airspace from the route that they were supposed to be on?"

National Transportation Safety Board member Todd Inman said the DC area is a unique environment for helicopters and that the Black Hawk was transitioning zones at the time of the crash. ATC is one of the "human factors" the agency will examine as part of its investigation, he said.

Air traffic control is a complex system with many moving parts and no room for errors

The national air traffic system in the US is immense in both size and complexity, 14,000 air traffic controllers handle upwards of 45,000 flights a day across 29 million miles of airspace.

It's an intricate network that includes hundreds of regional and area control centers, each responsible for a specific piece of airspace.

A pilot flying from San Francisco to Washington, DC, for example, could interact with more than 20 different controllers during the flight.

The job is infamous for its high stress and heavy workload, which can involve managing upwards of a dozen flights at a time.

These stressors are amplified for airports like Ronald Reagan National. The airport has strict flight paths and altitude restrictions. It handles more than 25 million passengers a year and is located in highly trafficked and highly controlled airspace, as it is near the White House, Pentagon, and other government buildings.

The airport has seen multiple near misses recently, including a Southwest Airlines flight that was instructed to cross the same runway on which a JetBlue plane was starting its take-off.

A month later, an American Airlines flight was cleared for takeoff at the same time another plane was given the go-ahead to land on an intersecting runway.

Controllers working the airspace in and around Reagan National also have to handle an extraordinary amount of private and military aircraft that operate in the area.

The situation is exacerbated by a shortage of around 3,000 air traffic controllers, which the FAA has worked to address with plans to hire 1,800 controllers in 2024 and 2,000 this year.

• United and Delta are expanding flights to Europe to capitalize on strong travel demand.
• United and Delta are running 23% and 13% more flights to Europe compared to 2019, respectively.
• Both airlines are upping their European presence with new transatlantic routes.

Airlines say Europe remains among the biggest money-makers going into 2025 as people eagerly flock to more international destinations.

United Airlines and Delta Air Lines said in recent earnings calls that they are deploying more seats than ever to Europe to take advantage of the booming travel demand, which has remained strong since the COVID-19 pandemic halted overseas vacations.

In the fourth quarter of 2024, United's passenger revenue to Europe increased 9.5% compared to 2023, with just a 2.3% increase in seat capacity.

Delta saw a 4% increase in transatlantic passenger revenue during the same period, despite a 2% reduction in capacity. (Delta's figures include Europe as well as half a dozen destinations in Africa and the Middle East.)

Both airlines have increased their planned transatlantic presence further into 2025, operating more than 100,000 flights total between the two, well above prior years according to data from Cirium.

Europe is no longer just a seasonal hot spot

Andrew Nocella, United's executive vice president and chief commercial officer, said during Wednesday's earnings call that Europe is becoming a "year-round destination" after being a less valuable revenue stream during off-peak months in previous years, like between January and March.

"Now we're seeing a totally different result, where people are willing to go on a Southern European vacation," he said. "And that really helps de-seasonalize Europe."

Nocella later said United expects quarter one to boast the best transatlantic financial performance in its first-quarter history.

He added that stronger hub connectivity with Star Alliance partner Lufthansa in Germany and money-making business traffic returning to London Heathrow are also helping United across the Atlantic.

Delta expressed a similar sentiment about Europe's desirability as a year-round destination for US travelers, specifically noting the strong dollar's additional buying power and the smaller crowd sizes compared to peak holiday periods.

"You go to a restaurant in New York and then go to a restaurant in Europe, you'll see a vast difference in the bill," Delta president Glen Hauenstein said in the airline's January 10 earnings call. "This is a great time to travel to Europe. People are seeing that."

The Atlanta-based carrier also said it does not believe strong off-peak season demand for transatlantic flights this winter will eat into consumers' appetite for summer travel.

Bernstein analyst David Vernon maintained a buy rating for United following its earnings report, saying international flying and premium services are particularly driving revenue.

CFRA Research analyst Ana Garcia said the firm expects United to see continued profitability. She said earnings are "buoyed by network optimization and operational improvements."

United's stock is up about 13% year-to-date, while Delta's is up about 9%.

New routes to Europe from United and Delta in 2025

United has become so bullish on Europe that it plans to launch new routes to off-the-beaten-path destinations in 2025 that aren't offered by competitors.

For example, this summer, the carrier will fly nonstop to Palermo, Italy, Faro, Portugal, and Nuuk, Greenland. These flights will complement United's already extensive transatlantic network, which includes flights to more than 30 European cities from the US.

Expected deliveries of the long-haul single-aisle Airbus A321XLR — the first expected in January 2026 — will help United push further into Europe as the jet can fly routes previously unprofitable with a widebody or unreachable with older narrowbodies. It will replace the airline's aging Boeing 757s.

Still, United said widebody supply constraints, including for airframes and engines, will impact its long-haul operations through at least the end of the decade.

The carrier has placed orders for 150 Boeing 787 Dreamliners and expects to receive 11 in 2025. That is down from the 18 expected in February 2024 .

Delta has not purchased the A321XLR, and it flies only a handful of Boeing 757 aircraft across the Atlantic.

The airline instead relies on a large fleet of older Boeing 767 and newer Airbus A330 and A350 widebodies to run more than 700 flights a week to 33 European destinations.

This summer, Delta will add new routes to locales in southern Europe, such as Barcelona and Catania and Naples in southern Italy.

• A judge rejected Boeing's plea deal with US prosecutors over 737 Max crashes.
• The deal involved Boeing pleading guilty to fraud and paying a $243.6 million fine.
• Boeing previously agreed to a $2.5 billion settlement with the Department of Justice in 2021.

A federal judge on Thursday rejected a July plea deal between Boeing and US prosecutors, citing concerns with the role diversity, equity, and inclusion would play in selecting an independent monitor.

In his decision, Judge Reed O'Connor expressed doubts about Boeing's and the government's ability to select the monitor solely based on capability without consideration of race. The judge noted both groups' strong focus on DEI in their operating policies.

"In a case of this magnitude, it is in the utmost interest of justice that the public is confident this monitor selection is done based solely on competency," the judge said in his decision. "The parties' DEI efforts only serve to undermine this confidence in the Government and Boeing's ethics and anti-fraud efforts."

The Texas judge O'Connor also criticized regulators' work overseeing Boeing's progress under the deferred prosecution agreement it signed in 2021, writing in the decision: "It is fair to say the Government's attempt to ensure compliance has failed."

The case stems from two Boeing 737 Max crashes that killed 346 people, the first with Indonesia's Lion Air in October 2018 and the second with Ethiopian Airlines in March 2019. Faulty software was found to be the culprit in both crashes.

Victims' families opposed the plea agreement, voicing displeasure with the process for selecting an independent anti-fraud monitor and the fact that Boeing's compliance with the monitor's recommendations is not a required condition of its probation, court documents noted.

"This is an excellent decision by Judge O'Connor and an important victory for the victims' families," Erin Applebaum, a lawyer representing 34 families of victims lost on the Ethiopian Airlines flight, told Business Insider.

"We anticipate a significant renegotiation of the plea deal that incorporates terms truly commensurate with the gravity of Boeing's crimes," she added. "It's time for the DOJ to end its lenient treatment of Boeing and demand real accountability."

Boeing did not immediately respond to a request for comment from Business Insider.

In July, Boeing agreed to plead guilty to fraud, pay a $243.6 million fine, and allow an independent monitor to oversee safety and quality control at its factories.

However, regulators said Boeing violated that settlement after the January Alaska Airlines door plug blowout. The deal was set to expire two days after the Alaska incident.

In May, the Justice Department said Boeing had failed to "design, implement, and enforce a compliance and ethics program."

In 2021, Boeing reached a $2.5 billion settlement with the Department of Justice and families of the victims in January 2021 to settle charges of fraud conspiracy related to the fatal crashes.

Boeing's former CEO, Dennis Muilenburg, was fired in December 2019 and was replaced by Dave Calhoun. Calhoun later stepped down in March 2024 after the Alaska blowout.

New Boeing CEO Kelly Ortberg, who started in August, has been tasked with overhauling the company culture and getting Boeing back on track with safety and its production targets.