01:20 PM EDT, 07/25/2024 (MT Newswires) -- Southwest Airlines ( LUV ) expects to end the year with 2,000 less employees as it reduces labor expense and brings staffing levels "in line with our current fleet," the company's finance chief said Thursday.

Tammy Romo said on an earnings call that the carrier will again reduce its headcount in 2025 as "attrition levels exceed our controlled hiring levels," according to a Capital IQ transcript.

Romo's comments came as Southwest ( LUV ) said it is taking steps to address "near-term revenue challenges."

"Our second-quarter performance was impacted by both external and internal factors and fell short of what we believe we are capable of delivering," Chief Executive Bob Jordan said in a statement. "We are taking urgent and deliberate steps to mitigate near-term revenue challenges and implement longer-term transformational initiatives that are designed to drive meaningful top and bottom-line growth."

For the three months through June, the company posted adjusted earnings of $0.58 a share versus $1.19 the year before, topping the Capital IQ-polled consensus of $0.51. Total operating revenue rose 4.5% to $7.35 billion, ahead of the Street's view for $7.34 billion.

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