03:02 PM EDT, 05/03/2024 (MT Newswires) -- (Updates with details in the second and third paragraphs.)

Southwest Airlines ( LUV ) pilots are facing reduced hours and lower monthly pay amid higher costs and overstaffing stemming from Boeing ( BA ) aircraft delivery delays, Reuters reported Friday, citing people familiar with the matter.

Southwest Airlines ( LUV ) expects a profit squeeze because of lower-than-anticipated aircraft deliveries this year, Reuters said. The plan for fewer hours will likely take effect in September and will be offered to hundreds of pilots, according to the report.

Cutting hours will reduce salary expenses and help avoid furloughs, while meeting US Federal Aviation Administration's requirement for pilots to stay in the cockpit, the report said, citing the sources.

Southwest ( LUV ) and Boeing ( BA ) didn't immediately respond to requests for comment from MT Newswires.

Shares of Southwest ( LUV ) fell 0.8% in recent trading Friday.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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