Summary
- Southwest Airlines removed the Boeing 737 MAX 7 from its 2024 outlook attributable to certification delays and provide chain issues.
- Despite a Q4 net lack of over $200 million, Southwest’s full-year net income amounts to almost $500 million.
- The Federal Aviation Administration has no timeline for certifying the MAX 7 and MAX 10.
Southwest Airlines removed the Boeing 737 MAX 7 from its 2024 operational outlook on Thursday, citing certification delays and provide chain issues. The news comes because the Dallas-based airline released its fourth quarter and full 12 months 2023 financial results.
Despite a greater performance in comparison with its meltdown at the tip of 2022, the carrier recorded a Q4 net lack of greater than $200 million. Its full-year net income, nonetheless, amounted to almost $500 million.
“The present status of the -7 certification”
In keeping with the present challenges surrounding the MAX family, Southwest made a last-minute change to its 737 contractural order book. Since October 2023, the airline was expecting to receive a complete of 85 MAX aircraft in 2024 – 27 MAX 7s and 58 MAX 8s – but updated its forecast to 79 planes on Thursday, specifically attributing the reduction to the continued issues with the MAX 7 variant.
“The Company is currently planning for about 79 MAX aircraft deliveries in 2024, which differs from its contractual order book […] attributable to Boeing’s continued supply chain challenges and the present status of the -7 certification. […]. The Company’s current capability plans don’t assume placing the -7 in service this 12 months and is subject to Boeing’s production capability.”
Southwest does have the to vary its firm order or options between the MAX 7 and MAX 8 Nonetheless, the airline explained that the Federal Aviation Administration (FAA)
The MAX 7 is Boeing’s smallest variant of the latest generation of its best-selling aircraft. The stretched MAX 8 and MAX 9 are the one variants certified to operate business flights, but each have had their respective problems, resulting in high-profile disasters. The most important variant, the MAX 10, has also faced certification challenges.
Boeing under scrutiny
Based on CNBC, FAA Administrator Mike Whitaker said the agency determined that a more can be needed to certify the MAX 7 and MAX 10 and that there is no such thing as a timeline for the method.
FAA: No Specific Timetable To Certify Boeing 737 MAX 7
In essentially the most recent of a series of setbacks, the FAA has said that it has no timetable to certify the 737 MAX 7.
Boeing has been under significant scrutiny regarding the integrity of its development of the MAX. In 2019, the MAX 8 was grounded after two deadly incidents, and the MAX 9 has been grounded this 12 months following the Alaska Airlines incident earlier this month. With the aircraft within the highlight once more, United Airlines is reevaluating its orders of the MAX 10. Delta Air Lines, contrastingly, stays confident within the stretched variant because it awaits certification.
Counting on the MAX 7 & improving profitability
With nearly 400 examples in its fleet, the 737-700 is the present backbone of Southwest’s operations. Because the airline has begun to retire some aging -700s, it relies on the MAX 7 as a direct substitute, with nearly 300 on order. This 12 months, 45 -700s and 4 -800s are expected to be retired.
Photo: Joe Kunzler | Easy Flying
Southwest reported a 2023 Q4 net lack of $219 million, but its full-year net income was $498 million. Q4 and full-year operating revenues amounted to $6.8 billion and $26.1 billion, respectively.
said the airline’s CEO, Bob Jordan.
Southwest Airlines Is Adding Narcan To Onboard Emergency Medical Kits
The airline will update the kits with the life-saving medication throughout this 12 months.