Boeing 737 MAX aircraft are parked at a Boeing facility in Renton, Washington on August 13, 2019.
David Ryder | Getty Images
Southwest Airlines said Tuesday it will have to adjust its capacity plans and reevaluate its financial forecasts for the year, citing delays in the supply of Boeingthe sole supplier of aircraft.
The Dallas-based airline said Boeing has informed Southwest leaders that it can expect 46 Boeing 737 Max 8 planes this year, down from 58. Southwest had expected Boeing to deliver 79 Max planes, including some of the smallest models, the Max 7, which has not yet received certification from the Federal Aviation Administration.
Because of the delays, Southwest said in a filing that it is “reevaluating all previous guidance for full year 2024, including the expectation for capital expenditures.”
Southwest's statements, ahead of a JPMorgan industry conference on Tuesday, are the latest sign of how Boeing's quality control crisis and production problems — both before and after a door plug blew out of a factory. Alaska Airlines flight in January – weighing on some of its best customers.
Alaska Airlines said in a filing Tuesday that 2024 capacity “is in flux due to uncertainty regarding the timing of aircraft deliveries resulting from increased Federal Aviation Administration and Department of Justice scrutiny of Boeing and its operations.”
Last week, United told staff it would have to pause pilot hiring this spring due to late-arriving Boeing planes, CNBC reported. Southwest said it stopped hiring pilots, flight attendants and other staff this year and expects to end 2024 with a lower workforce than last year.
Southwest shares fell more than 7% in premarket trading. The airline said leisure bookings in the first quarter were weaker than expected and expects unit revenue to be flat and up no more than 2% from a year earlier, compared with a January estimate of an increase of as much as 4.5%.
Boeing did not immediately respond to a request for comment.