Boeing 737 MAX airplanes are seen parked at a Boeing facility on August 13, 2019 in Renton, Washington.
David Ryder | Getty Photos
Southwest Airways mentioned Tuesday that it must trim its capability plans and reevaluate its monetary forecasts for the yr due to plane supply delays from Boeing, its sole provider of airplanes.
The Dallas-based airline mentioned Boeing knowledgeable Southwest’s leaders that it ought to anticipate 46 Boeing 737 Max 8 planes this yr, down from 58. Southwest had anticipated Boeing to ship 79 Max planes, together with a few of the smallest mannequin, the Max 7, which hasn’t but received certification from the Federal Aviation Administration.
Due to the delays, Southwest mentioned in a submitting that it’s “reevaluating all prior full yr 2024 steering, together with the expectation for capital spending.”
Southwest shares had been down greater than 5% in premarket buying and selling. The airline mentioned leisure bookings within the first quarter had been weaker than anticipated and forecast unit income to be flat to up not more than 2% in contrast with a yr earlier, down from a January estimate of an increase of as a lot as 4.5%.
