Southwest Airlines said Tuesday that it would cut its capacity plans and review its 2024 financial forecast because of delivery delays from Boeing.
Southwest will now get 46 Boeing 737 Max 8 airplanes from Boeing, the airline’s sole provider, instead of the previously expected 58. Because of this, Southwest said it planned to “reevaluate all prior full year 2024 guidance, including the expectation for capital spending” in a filing.
“We are squarely focused on implementing changes to strengthen quality across our production system and taking the necessary time to deliver high quality airplanes that meet all regulatory requirements,” Boeing said in a statement. “We continue to stay in close contact with our valued customers about these issues and our actions to address them.”
Southwest’s share prices fell almost 15% on Tuesday, also noting that leisure bookings in the first quarter were lower than expected.
