By Abhijith Ganapavaram
(Reuters) – Southwest Airways stated on Thursday it was anticipating to take fewer deliveries of Boeing’s 737 MAX plane and it had not noted the MAX 7 mannequin, which is mired in certification delays, from its 2024 fleet plans.
The U.S. finances service, one in every of Boeing’s loyal clients, expects to take supply of 79 MAX plane this 12 months, in contrast with its earlier estimate of 85, as a result of planemaker’s supply-chain challenges and the present standing of the MAX 7 certification.
“The corporate’s present capability plans don’t assume putting the MAX 7 in service this 12 months and is topic to Boeing’s manufacturing functionality,” Southwest stated in an announcement.
Nonetheless, with the U.S. Federal Aviation Administration (FAA) barring Boeing from growing its MAX manufacturing, some airways might be “considerably” impacted by any freeze on larger manufacturing, although a scarcity of jets might enhance carriers’ ticket pricing energy.
Southwest’s transfer to take away the smaller MAX 7 from its fleet plans follows United Airways’ announcement earlier this week that it will construct a fleet plan with out the bigger MAX 10, certification of which can be more likely to be delayed.
Southwest, the biggest buyer of the MAX 7, advised Reuters in November final 12 months it was anticipating the aircraft to be licensed by the FAA by April, permitting it to begin flying the plane in October and November this 12 months.
On Thursday, the airline stated it had accelerated a small variety of MAX 8 orders and transformed three 2025 MAX 7 agency orders to a few 2024 MAX 8 agency orders.
Dallas-based Southwest reported a fourth-quarter internet lack of $219 million, or 37 cents per share, almost unchanged from final 12 months, as a result of a $426 million working expense pushed by a rise within the ratification bonus for pilots as a part of a brand new contract.
Whole income for the quarter rose 10.5% to $6.82 billion.
(Reporting by Shivansh Tiwary and Abhijith Ganapavaram in Bengaluru; Modifying by Shounak Dasgupta)
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