European governments should have allowed some of the continent's airlines to collapse during the pandemic to accelerate consolidation, according to SAS chief executive Anko van der Werff. Speaking at the UK Aviation Club in London on 19 February, Werff explains that in his view, “I don’t think that all options were explored” during the pandemic, and, when it hit, “a number of airlines together just ran to governments and asked for government support, including SAS, before I arrived. I truly believe [providing bailouts] was the wrong solution.” He argues that Europe is suffering from a fragmentation in its airline market that means carriers do not have the economies of scale to invest in their products or compete globally, calling them “breakeven airlines”. As an example, whereas in the USA four large players represent 80% of the market and are “hugely profitable”, in Europe the same market share is divided between 17 carriers that struggle for financial sustainability, he highlights. Covid therefore was a chance to let the market consolidate around its main players that would have emerged larger and more profitable, as well as better able to compete globally and provide a service to their customers. “I do believe 2020 was a massive opportunity to… restructure a business that is perpetually losing money,” he continues. “Had I been in the European Commission or a prime minister somewhere… there was a golden opportunity for politicians to say: ‘No, aviation industry… Sort yourselves out. Fix it with market money.’” Commenting that this is close to what happened in Latin America and the USA, he adds that their aviation markets have come out of the pandemic “better than Europe’s has”. SAS itself received €1 billion ($1 billion) in backing from state shareholders Sweden and Denmark in 2020, comprising equity participation, a rights issue, and other support. Both countries increased their stakes as a result, but SAS went on to institute Chapter 11 bankruptcy protection and restructuring which wiped out much of the airline’s existing ownership positions. Having emerged from the process in August 2024, today private equity firm Castlelake holds a 32% stake in the airline, with Denmark holding 25.8%, Air France-KLM 19.9%, Lind Invest 8.6%, and the rest divided among creditors. Werff joined the company in 2021 having previously led Colombia’s Avianca. Core to the problem has been European government indecision over whether to treat its airlines as businesses or essential infrastructure that needs to be protected, Werff believes. Furthermore, he highlights what he describes as contradictory policy from the Commission, which acts to push up prices to consumers with environmental charges and other regulations on its airlines, while at the same time blocking consolidation on the grounds that it could increase fares. Such anti-business positions, as he sees them, “remains an issue that I have [with Europe]”, he continues, adding that the ease of operating in the USA makes it “a different world” for airlines.

Southwest Airlines has eliminated around 1,750 corporate roles, a move the US major estimates will save it $210 million in 2025 and $300 million in 2026. The workforce reduction centres on corporate and leadership positions and represents around 15% of corporate positions, Southwest says, adding that the job cuts encompass 11 senior-leadership roles. The layoffs will be "substantially complete" by the end of 2025's second quarter, it adds. "This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions," Southwest chief executive Bob Jordan states. "We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster and more agile organisation." The corporate-workforce reduction follows a series of significant personnel changes at the Dallas-based carrier in the wake of the 24 October 2024 settlement between its board and activist investor Elliott Investment Management. At that time, five of Elliott's nominees were approved as board members. Former Southwest chief executive Gary Kelly's previously announced retirement as board chair was moved up to 1 November from spring 2025. In early January, Southwest disclosed that chief financial officer Tammy Romo would be retiring in April, after serving the US major in that role since 2012. A month later, in February, the carrier named former Breeze Airways president Tom Doxey as Romo's successor. Also set to retire in April is chief administration officer Linda Rutherford. Two Southwest board members, Eduardo Conrado and Elaine Mendoza, notified the company on 4 February that they would not stand for re-election at an upcoming annual meeting of shareholders.

US Department of Transportation secretary Sean Duffy has confirmed in a post on social media platform X that the federal government has "let go" of fewer than 400 employees at the Federal Aviation Administration. "Here's the truth: the FAA alone has a staggering 45,000 employees," Duffy writes in a 17 February X post. "Less than 400 were let go, and they were all probationary, meaning they had been hired less than a year ago. Zero air traffic controllers and critical safety personnel were let go." Duffy adds that previous US transportation secretary Pete Buttigieg "chose to use this amazing department – that is so critical to America's success – as a slush fund for the green new scam and environmental justice nonsense". David Spero, national president of the Professional Aviation Safety Specialists (PASS), AFL-CIO, stated on 15 February that the union is "troubled and disappointed by the administration's decision to fire FAA probationary employees PASS represents without cause nor based on performance or conduct". He notes that several hundred FAA employees on the evening of 14 February began receiving termination emails "sent from an 'exec order' Microsoft email address, not an official .gov email address". "These employees were devoted to their jobs and the safety critical mission of the FAA," Spero says. "This draconian action will increase the workload and place new responsibilities on a workforce that is already stretched thin." US senator Maria Cantwell, ranking member of the Senate Commerce Committee, states that "now is not the time to fire technicians who fix and operate more than 74,000 safety-critical pieces of equipment like radars, navigational aids and communications technology". Cantwell adds: "The FAA is already short 800 technicians and these firings inject unnecessary risk into the airspace – in the aftermath of four deadly crashes in the last month. The FAA's safety workforce needs to be a priority for this administration." The Democratic senator from Washington state on 6 February had sent a letter to Duffy criticising what she says is his "intention to involve Elon Musk in the FAA's safety systems or process". She adds in the letter: "FAA has the legal responsibility for safety oversight of companies with commercial space transportation licences. Elon Musk's SpaceX rocket launches share the airspace with commercial airplanes, and the FAA has the responsibility for keeping the entire airspace safe. SpaceX has been fined by the FAA for failing to comply with specific requirements in its launch licence. "Mr Musk, in turn, called for the firing of Mike Whitaker, the FAA administrator who the Senate confirmed 98-0 because the FAA issued a fine against SpaceX for not following the rules. We have ethics and recusal laws for a reason – to prevent corporate interference in protecting the public interest." Cantwell notes in the letter that the federal government is "now without a permanent FAA administrator to lead us through the biggest US air crash we have had in years" – a reference to the fatal mid-air collision on 29 January of a PSA Airlines MHIRJ CRJ700 and a US Army Sikorsky H-60 Black Hawk helicopter. Whitaker on 20 January stepped down as FAA administrator, a departure that coincided with the day of Donald Trump's second inauguration as US president. Trump subsequently named former FAA employee Chris Rocheleau acting administrator of the regulator.