A Boeing 737 MAX aircraft is parked at the Boeing factory in Renton, Washington, on August 13, 2019.
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Southwest Airlines It said on Tuesday it would have to cut production capacity plans and reassess its financial forecasts for this year, citing delivery delays. boeing companyits sole aircraft supplier.
Boeing informed Southwest leaders that it expects to deliver 46 Boeing 737 Max 8 aircraft this year, up from 58 previously, the Dallas-based airline said. Southwest had expected Boeing to deliver 79 Max planes, including some of the smallest model, the Max 7, which has yet to be delivered. Not yet certified by the Federal Aviation Administration.
Due to the delays, Southwest said in a filing that it was “reevaluating all previous full-year 2024 guidance, including capital expenditure expectations.”
Southwest’s announcement ahead of a J.P. Morgan industry conference on Tuesday is the latest sign of how Boeing Co.’s quality control crisis and production problems, both before and after a door jam burst on an Alaska Airlines flight in January, are affecting some of its best airlines. customer.
last week, Unity According to CNBC, because Boeing planes are late, the company told employees that it must suspend pilot recruitment this spring.
Southwest Airlines shares fell more than 5% in premarket trading. The airline said leisure bookings in the first quarter were weaker than expected and expected unit revenue to be flat compared with the same period last year, with an increase of no more than 2%, down from the 4.5% growth expected in January.
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