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✓ Published: 13-Mar-2024
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Southwest Airlines said it will have to trim its capacity plans and reevaluate its 2024 financial forecasts due to delivery delays from Boeing, its sole aircraft supplier. Boeing informed Southwest that it should expect 46 Boeing 737 Max 8 planes this year, down from a previous estimate of 58, due to delays. Southwest had expected 79 Max planes total. Boeing is facing a quality control crisis after a door plug blew out of an Alaska Airlines flight in January. Leisure bookings in the first quarter were weaker than expected, and Southwest forecast flat to 2% revenue growth, down from a prior estimate of up to 4.5%.
Southwest Airlines said it will have to trim its capacity plans and reevaluate its 2024 financial forecasts due to delivery delays from Boeing, its sole aircraft supplier. Boeing informed Southwest that it should expect 46 Boeing 737 Max 8 planes this year, down from a previous estimate of 58, due to delays. Southwest had expected 79 Max planes total. Boeing is facing a quality control crisis after a door plug blew out of an Alaska Airlines flight in January. Leisure bookings in the first quarter were weaker than expected, and Southwest forecast flat to 2% revenue growth, down from a prior estimate of up to 4.5%.
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