The Strategist

US airlines expect to reduce airplane deliveries due to Boeing's problems

03/13/2024 - 02:12

A number of American airlines have stated that they anticipate a decrease in aircraft deliveries in 2024 because of Boeing's issues.

Raimond Spekking
Raimond Spekking
Southwest Airlines announced on March 12 that it had received word from Boeing that, contrary to expectations, the company would only be able to obtain 46 737 MAX 8 aircraft this year, as opposed to 79. The airline stated that as a result, it will have to alter its annual timetable, particularly for the second half of the year. Consequently, Southwest has lowered its financial forecast for 2024.

According to United Airlines CEO Scott Kirby, "Boeing deliveries are going to be way behind this year." Additionally, Alaska Air said that it is reevaluating its plans for the year due to a delay in Boeing deliveries. On March 12, shares of United Airlines plummeted around 3%, and shares of Southwest Airlines fell over 14%.

The root of Boeing's issues was the incident that occurred in early January involving an Alaska Airlines 737 MAX 9 that slipped off its emergency exit hatch plug and depressurized the cabin. The United States Federal Aviation Administration discovered numerous anomalies in the 737 MAX's production procedures, according to a report published in The New York Times on March 12. The regulatory body declared in January that it would not approve further 737 MAX production until the inspections were finished.