Southwest Airlines delays the delivery of 67 Boeing 737 MAX 8 airplanes. The delayed delivery schedule will save Southwest Airlines $1.9 billion worth of spending, and was announced on Thursday. The aircraft deliveries effected are now scheduled to be made from 2023 through the 2025 timeframe. Southwest made a statement that its current revenue environment has entered into a challenging period. Airlines across the globe have placed huge aircraft orders with plane manufacturers in the last few years. These orders were originally driven by sky high fuel prices. However, those prices have come way down over the course of the last couple of years. The Southwest Airline delays will not change the fact that the carrier will still be the new aircrafts launch operator.
Southwest Airlines delays not to effect launch status
Southwest Airlines has a total of 170 Boeing 737 MAX 8 aircraft on order. The discount carrier also has an order for 30 of the smaller Boeing 737 MAX 7 airplanes. Southwest also announced Thursday it was moving up delivery of six new Boeing 737-800 aircraft from 2018 to 2017. Those planes are targeted to replace some older, less fuel efficient Boeing 737 jets. It is not uncommon for airlines to juggle scheduled deliveries due to market conditions. Southwest, based at Dallas Love Field, is viewed as an industry innovator and leader. The decision by the airline to defer these new aircraft orders may point to some turbulence on the horizon.
Doug Parker, CEO of American Airlines, recently stated that the days of airline losses are behind the industry. Statements of that nature may indicate that the industry has lost some of its focus. There is no guarantee that the industry cannot lose money again. Following a long period of sold out flights, there has been an increase in empty seats lately. The statement from Mr. Parker just reminds me of the old story of Winnie the Pooh and the Honey Pot.
