Southwest Airlines changed its forecast for new Boeing 737 MAX deliveries in 2023.
The announcement came today as part of the company’s release of its financial and operating results for the first quarter of the year. Southwest suffered the widespread fallout from last December’s systems failure and lost 159 million dollars between January and March.
With the exception of the worst months of the pandemic, the airline had not reported a loss since its founding. Following the release of the results, its shares fell more than 5% on the stock market.
See also: Southwest to invest more than one billion to prevent future network outages
Southwest cuts Boeing 737 MAX delivery estimate
Southwest, which is one of the largest customers for the manufacturer’s latest narrow-body development, said it expects to take delivery of seventy Boeing 737 MAX 8 aircraft during 2023, instead of the ninety originally planned.
The operator lowered its expectations nearly two weeks after Boeing halted deliveries of some 737 MAXs to check fittings made by one of its suppliers for the fuselage-tail joint area.
With such a large backlog, the delay is expected to increase the company’s operating costs and limit some of its ability to meet demand. Ultimately, this would put additional pressure on revenues. However, the number of units ordered is unlikely to change.
According to Bob Jordan, CEO of Southwest Airlines, the reduction in the number of deliveries will result in a decrease in its annual capacity of approximately one point.
According to the report released today, the company still expects to take delivery of 31 Boeing 737 MAX 7 this year. This seems highly unlikely: despite the manufacturer’s efforts, the United States Federal Aviation Administration (FAA) has yet to certify the variant. And the delivery schedule depends primarily on this.
The current contract provides for a flexibility condition to designate firm orders or options for the MAX 7 or MAX 8 variants, subject to advance written notification.
See also: Boeing halts deliveries of some 737 MAXs after supplier part issues
