Southwest Airlines
said it’s removing
Boeing’s
737 MAX 7 model from its plans for the fleet.
The airline said it would receive fewer aircraft than planned this year and that it won’t take any MAX 7s. It put that down to
Boeing’s
supply-chain problems and delays in getting the model certified. Earlier this week,
United Airlines
said it no longer wants any 737 MAX 10s.
It’s more bad news for Boeing, which is coping with the fallout from a door plug dropping off one of its 737 MAX 9 planes on an
Alaska Air
flight earlier this month. Boeing shares fell 2.6% in the premarket.
In its results Thursday, The company posted a loss of 37 cents a share, similar to last year’s loss. But on an adjusted basis, Southwest earned 37 cents a share—well above profit of 12 cents that analysts expected. Operating revenue also exceeded forecasts.
Southwest stock rose 2.5% in premarket trading after initially falling when the results were released.
The unadjusted results take into account a $426 million operating expense driven by a higher ratification bonus for pilots as part of their new contract. The amount is subject to change.
Southwest’s report was still more upbeat than it was a year ago. The fourth quarter of 2022 was when Southwest had nearly 17,000 cancellations around Christmas, something that ultimately resulted in a $140 million settlement with the U.S. Department of Transportation.
Southwest stock has dropped 13% over the past year, but has gained 33% over the past three months.
Write to Ben Levisohn at [email protected]
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