Boeing has received another blow to its confidence from one of its major customers as it was revealed that Southwest Airlines does not expect to have the 737 MAX 7 in 2024 and that, at the same time, it will receive fewer aircraft from the manufacturer.
In the context of presenting its 2023 financial results – where it reported full year net income of USD 498 million – Southwest Airlines said that “The Company’s current capacity plans do not assume placing the -7 in service this year and is subject to Boeing’s production capability”.
In a similar vein, United Airlines had already stated this week that its projections also do not currently include the largest variant of the MAX family, the 737 MAX 10, whose certification is delayed.
See also: See you in 2024: The FAA confirms that the certification of the Boeing 737 MAX 7 has no defined date
According to the latest contract, Southwest Airlines was supposed to receive 85 Boeing 737 MAX in 2024 (27 of the 737 MAX 7 version and 58 737 MAX 8), but it is finally scheduled to receive only 79 aircraft. To compensate for the missing capacity of the MAX 7, it converted three deliveries of that variant planned for 2025 to three MAX 8s to be delivered in 2024, and brought forward three MAX 8 orders from 2025 to this year.
These are the charts the airline provided in the report:
“The delivery timing for the -7 is dependent on the FAA issuing required certifications and approvals to Boeing and the Company”, clarifies Southwest. ” The FAA will ultimately determine the timing of the -7 certification and entry into service, and the Company therefore offers no assurances that current estimations and timelines are correct”, they continue.
Southwest Airlines estimates that during 2024 its capacity (in available seat-miles) will grow by about 6%, less than half of the 14.7% reported in 2023. Beyond 2024, the company continues planning low to mid single-digit growth, although they clarify that they will continue “evaluating their plans based on progress made in achieving their long-term financial goals”.
In 2023, the airline received 86 Boeing 737 MAX 8s and retired 39 Boeing 737-700s, ending the year with a fleet of 817 aircraft. This year it will retire 45 B737-700s and 4 B737-800s, ending with 847 aircraft.
