U.S. airlines warned on Tuesday that delays in jet deliveries from Boeing Co. jeopardized plans to increase capacity, as the airline industry takes a deeper hit from the airline’s safety crisis.
The airline industry has lowered its delivery expectations for this year due to problems at Boeing Co., complicating efforts to meet record travel demand.
Boeing Co. has come under intense regulatory scrutiny as safety and quality standards in the company’s manufacturing processes are investigated following the tragic January 5th aerial panel explosion. .
“Boeing deliveries will be significantly delayed this year,” United Airlines CEO Scott Kirby said at a conference hosted by JPMorgan, adding, “It’s impossible to say when the MAX 10 will be certified. ” he added.
The company’s stock price fell 3.3% on Tuesday.
United Airlines has approached Airbus about purchasing additional A321neo jets to fill a potential gap created by delays in Boeing’s larger 737 MAX 10, which is scheduled to be certified after the MAX 7.
If the A321’s price doesn’t work out for the company, the company is prepared to rely more on the 179-seat MAX 9 and shift orders back to the MAX 10 once the 185-seat jet is certified in its current configuration. Dew. Kirby said.
A large backlog is making it difficult for airlines to shift orders to rival Airbus, the world’s only major commercial aircraft maker. United Airlines announced earlier this year that it would build out its fleet plan without the MAX 10.
Rival Southwest Airlines said Tuesday it expects this year’s MAX deliveries from Boeing Co. to be 42% lower than previously expected, likely resulting in reduced capacity in 2024. .
This is the second time that Southwest Airlines has lowered its delivery forecast for this year, after delays first became noticeable in January, when the stock price fell 13%.
The first delay was announced after the Federal Aviation Administration barred Boeing from increasing production of its 737 MAX without specifying a timetable for lifting the restrictions.
Airline executives have publicly voiced support for Boeing as it faces increased regulatory and legislative scrutiny, but privately they have expressed frustration over problems that are beginning to impact the company’s ability to meet demand for passenger jets. is holding.
Boeing has advised Southwest Airlines to expect fewer 79 aircraft in 2024, including smaller MAX 7s, all of which will be MAX 8s, the airline said. said in a filing Tuesday.
The nation’s largest airline said it does not expect to deliver its MAX 7 jets, which have been delayed in certification, until 2024.
Southwest CEO Bob Jordan said the latest forecast has changed again after the company emphasized the need to reduce capacity and “reoptimize schedules” for the second half of 2024. He even said, “I’m not surprised.” Full-year production capacity will be reduced by 1 percentage point.
The need to reduce capacity and “reoptimize schedules” for the second half of 2024 will require Southwest Airlines to reduce its full-year capacity plan by a full percentage point, the airline said.
Alaska Airlines Group, the operator of the 737 MAX 9 plane that suffered a cabin panel blowout in midair, also said its capacity plans for 2024 are still in flux due to the Boeing crisis.
Chief Executive Officer Ben Minicucci said Tuesday that the company does not expect to receive all of the 47 aircraft deliveries planned from Boeing over the next two years.
Following remarks from U.S. airline leaders, Boeing said in a statement on Tuesday: “We are implementing changes to strengthen the quality of our entire production system to deliver high-quality aircraft that meet all regulatory requirements. We’re really focused on devoting the time necessary to that.”
“We remain in close contact with our valued customers about these issues and the actions we are taking to address them.”
Boeing stock fell 4.6% after the aircraft maker said it delivered 27 planes in February, one less than the same month last year.
