Southwest Airways Cuts 2023 Boeing 737 MAX Supply Estimate By 20 Planes

Early this morning, Southwest Airways launched its 2023 Q1 monetary report. Within the report, the airline shared that it anticipates receiving fewer Boeing 737 MAX 8s this yr than anticipated. Till lately, the airline has been anticipating 90 737-8s to be delivered in 2023. Following this newest announcement, it solely expects to obtain 70 this yr. The minimize comes as MAX deliveries proceed to be hampered by manufacturing delays. Whereas the airline will seemingly obtain fewer deliveries this yr, the variety of MAXs on order is unlikely to alter.

Purchaser’s regret

The story of the 737 MAX is difficult, to say the least. From high-profile accidents to lawsuits to pandemic-related manufacturing delays, the MAX has constantly discovered itself in headlines across the globe. Regardless of its setbacks, many airways proceed to cherish the MAX collection as orders proceed to develop. Nevertheless, in current months Boeing has run into a number of hiccups with its manufacturing course of on account of a scarcity of available components, which has slowed manufacturing and deliveries significantly.

Photograph: Angel DiBilio | Shutterstock

Southwest Airways, which has positioned orders for over 200 MAX 8s, has solely obtained a small portion of those airplanes. It has been ready for 90 further 737-8s to be delivered all through this yr. With current delays at Boeing manufacturing services, Southwest has opted to lower its expectations in stating that it solely anticipates 70 MAX 8s to be delivered by yr’s finish. The President and CEO of Southwest Airways, Bob Jordan, said the next regarding the lower in anticipated deliveries,

“Whereas we’re aware of the unsure financial setting, demand for home air journey stays sturdy, so far. Our objective stays to handle inflationary value will increase and keep our aggressive value benefit. As a result of current supply delays at The Boeing Firm (Boeing), we’re additional decreasing deliberate 2023 plane deliveries to 70 from 90, leading to an approximate one-point lower in year-over-year deliberate 2023 capability.”

Whereas a lower in 20 airplane deliveries will undoubtedly have an effect on Boeing’s yearly earnings, it’s not fully surprising. In accordance with Reuters, two weeks in the past; airline executives shared skepticism regarding manufacturing numbers because the airline famous that the delays would seemingly have an effect on MAX deliveries all year long.

Ready on two birds

Whereas the MAX 8 has been probably the most profitable member of the 737 MAX household, it’s not the one member Southwest is ready on. Southwest has additionally been awaiting deliveries of the smallest member of the 737 MAX household, the MAX 7. The airline has positioned an order for 189 737-7s. Upon inserting the order, the airline was optimistic in anticipating to obtain 31 MAX 7s all through 2023. Sadly for Southwest and Boeing, the MAX 7 has but to obtain FAA certification. Regardless of Boeing’s greatest efforts, it’s nonetheless unclear when the MAX 7 can be totally licensed.

Photograph: Wirestock Creators | Shutterstock

Southwest already operates a large fleet of Boeing 737 airliners. Nevertheless, this fleet is getting old quicker than it’s rising on account of varied delays in MAX manufacturing, which is of appreciable concern to the airline because it plans to construct a fleet of strictly MAX airplanes. Fortunately, it’ll nonetheless obtain deliveries of the MAX 8 because it steadily retires its Boeing 737-700s. It plans to retire 26 of those airliners this yr. With 70 new MAX 8 deliveries, the airline will develop its capability significantly. Nonetheless, airline executives worry it will likely be inadequate to fulfill the quickly increasing air journey demand it faces.

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Supply: Reuters