DALLAS (AP) — American Airlines and Southwest Airlines both lost money in the first quarter, and Southwest said Thursday that it will limit hiring and close operations at four airports.

Southwest expects to end this year with 2,000 fewer employees than it had at the start of the year.

Airlines are dealing with higher labor costs and delays in getting new planes from Boeing, which is limiting their ability to add more flights at a time of high demand for travel.

American said it lost $312 million as labor costs rose 18%, or nearly $600 million. The airline said it expects to return to profitability in the second quarter — a busier time for travel — and post earnings between $1.15 and $1.45 per share. Analysts expect $1.15 per share, according to FactSet.

The first-quarter loss amounted to 34 cents per share excluding special items, which was worse than the loss of 27 cents per share forecast by analysts.

Revenue was $12.57 billion.

Southwest said it lost $231 million and will limit hiring, offer voluntary time off to employees and stop flying to four airports: Cozumel, Mexico; Syracuse, New York; Bellingham, Washington; and George Bush Intercontinental Airport in Houston, where the airline’s major operation is at smaller Hobby Airport.

CEO Robert Jordan said the airline was reacting quickly “to address our financial underperformance” and cope with delayed deliveries of new planes from Boeing. The airline expects to have 802 aircraft by the end of the year, down from an earlier plan for 814 planes.

The Dallas-based airline said the loss, after excluding special items, was 36 cents per share. That was slightly worse than the loss of 34 cents per share that Wall Street expected, according to a FactSet survey.

Revenue rose to $6.33 billion, below analysts’ forecast of $6.42 billion.

French President Emmanuel Macron is expected to outline his vision for Europe to become a more assertive global power against a backdrop of war in Ukraine and other security and economic challenges, in a speech on Thursday ahead of pivotal European Parliament elections in June.

The French president plans to focus on strategic and geopolitical issues in Europe, including defense, the economy, protecting the environment and safeguarding democracy, his advisers said. Russia’s war in Ukraine, now in its third year, is expected to be the main theme of the speech Macron will deliver at Paris’ Sorbonne University on Thursday.

France has been a firm supporter of Ukraine in its fight against Russian aggression, and Macron has often clashed with other Western leaders as he has insisted that Europe must stand by the country at any cost. Last month, the French president alarmed European leaders by saying that sending Western troops into Ukraine to shore up its defenses shouldn’t be ruled out.

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Macron, a staunch European, is also expected to rally support for his centrist Renaissance party ahead of the June 6-9 elections for the European Parliament. The French president lost his majority in France’s most influential house of parliament, the National Assembly, after the 2022 election to the far-left coalition and the far-right National Rally party.

The social situation in France remains tense as Paris prepares to host the Olympic Games this summer, amid protests from teachers, police officers, and farmers in recent weeks. The protests follow huge demonstrations last year against Macron’s ultimately successful proposal to rise the retirement age.

Spanish Prime Minister Pedro Sánchez denied corruption allegations against his wife but said he will consider resigning after the launch of a judicial investigation into accusations by a right-wing legal platform that Begoña Gomez used her position to influence business deals.

Sánchez said in a letter posted on his X account that while the allegations against his wife are false, he is cancelling his public agenda until Monday when he will announce whether he will continue or step down.

“I need to stop and reflect,” Sánchez wrote. “I must answer the question if it is worth it to continue, given the mud pit the right and far-right have made out of our politics, if I must continue at the helm of the government or renounce that highest of honours.”

Sánchez, 52, has been Spain’s prime minister since 2018. He was able to form a new left-wing coalition government in November to start another four-year term. He is one of Europe’s longest-serving Socialist leaders.

Manos Limpias, or “Clean Hands” accuses Gómez of allegedly having used her position to influence business deals. The court did not provide further information and said that the probe was under seal.

Manos Limpias describes itself as a union, but its main activity is pursuing legal cases. Many have been linked to right-wing causes. It acts as the “popular prosecution,” a peculiarity of Spanish law that allows individuals or entities to take part in certain criminal cases even when they haven’t been directly harmed by the accused.

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