At the JP Morgan Industrials Conference this week, Southwest Airlines have confirmed delays of Boeing 737 aircraft, with no MAX 7 deliveries at all this year.
This comes in the latest of news pertinent to the aircraft type, that has been scrutinised with a fine tooth comb recently.
Without further ado, let’s get into it…
Delays to 737 Deliveries, No MAX 7 This Year…
Southwest Airlines has said that they expect to receive far fewer Boeing 737 MAX aircraft this year.
It is understood that of the MAX 8, this has been reduced down from 58 to 46 units.
With no MAX 7 deliveries expected this year, the previous total delivery expectation was at 79.
Furthermore, significant delays are also being faced on the MAX 7 variant, which is producing headaches for other customers as well.
This reaffirms previous reports of the airline taking the aircraft out of their fleet plan for 2024.
Of that particular variant of aircraft, Southwest Airlines has over 300 on order.
Disruption Looks to be Minimal for the Airline…
However, the disruption is expected to be minimal at best.
In a recently released document pertinent to it’s first quarter guidance, this is expected to reduce capacity by 1%.
It is understood that this disruption will take place in the second half of this year.
However, for the first half of this year, Southwest Airlines expects capacity to increase from 10% to 11%.
Revenues per available seat mile will now be a flat 2% as opposed to 2.5%-4.5%.
Furthermore, costs for fuel increases will remain at a flat 6%, as opposed to five to six per cent.
Overall…
In conclusion, whilst Southwest Airlines isn’t going to receive as many Boeing 737 MAX 7 & 8 aircraft, it isn’t a problem right now.
The disruption is expected to come in the second half of this year, due to the heavy delays on the MAX 7 certification.
There doesn’t seem to be an end goal in sight as of yet for Boeing, but all eyes will be on how long it takes for such certification to occur.
But for now, let’s see how this will affect the airline going further into 2024.
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