Please ensure Javascript is enabled for purposes of website accessibility
Southwest Plans to Reduce Capacity, Reevaluate 2024 Financial Outlook on Delivery Delays from Boeing
gvw_ap_news
By Associated Press
Published 1 month ago on
March 12, 2024

Share

Southwest predicts higher economic fuel costs per gallon for the first quarter.

The airline’s stock is down nearly 15% in morning trading.

Boeing is under scrutiny from multiple government investigations.


Shares of Southwest plunged Tuesday as the airline said that it plans to reduce capacity and reevaluate its full-year financial outlook because of fewer expected aircraft deliveries from it supplier, Boeing.

Southwest Airlines said in a regulatory filing that Boeing expects to deliver 46 737-8 planes this year. The company previously anticipated 79 737 Max aircraft deliveries, which included 58 737-8 planes.

In addition, Southwest said that it now assumes there will be no 737-7 aircraft deliveries, and it continues to assume no -737-7 planes will be placed into service this year based on the current certification status with the Federal Aviation Administration.

First Quarter Forecasts

For the first quarter, Southwest now foresees operating revenue per available seat mile being flat to up 2%. Its prior forecast was for the metric to be up 2.5% to 4.5%. The company predicts economic fuel costs per gallon will be in a range of $2.95 to $3. That’s higher than its previous estimate of $2.70 to $2.80.

Boeing Under Scrutiny

Boeing has been facing mounting pressure lately. The company is facing multiple government investigations. On Monday Transportation Secretary Pete Buttigieg said that Boeing needs to make a “serious transformation” around its safety and manufacturing quality.

The comments came one day after Buttigieg said the aircraft builder is under “enormous” scrutiny by his department since a panel blew off of a Boeing 737 Max jetliner in midflight.

Over the weekend, The Wall Street Journal reported that the Department of Justice launched a criminal investigation into the Jan. 5 blowout on an Alaska Airlines jet. That followed the company’s admission that it couldn’t find records that the National Transportation Safety Board sought for work done on the panel at a Boeing factory.

The Federal Aviation Administration, part of Buttigieg’s department, is also investigating Boeing.

Boeing’s Quality-Control Issues

Last week, Boeing, which is based in Arlington, Virginia, came under withering criticism by National Transportation Safety Board Chair Jennifer Homendy over the missing work records on the Alaska jet. She told a Senate committee that Boeing had repeatedly rebuffed her agency’s attempts to get information ever since the blowout. Boeing disputed some of Homendy’s claims; NTSB stood by her testimony.

The FAA has barred Boeing from boosting production of Max jets and gave the company 90 days to come up with a plan to fix quality-control issues.

Southwest’s stock is down nearly 15% in morning trading.

RELATED TOPICS:

DON'T MISS

How California Legislators Got More Than $1.4 Million in Travel and Gifts in 2023

DON'T MISS

‘Digital Democracy’ Project Penetrates California’s Opaque Political Processes

DON'T MISS

US Shoots Down Iran-Launched Attack Drones as Biden Team Pledges ‘Support’ for Israel

DON'T MISS

Sacramento Gave Homeless Camp a Lease as an Experiment. Here’s What Happened.

DON'T MISS

Merced Supervisors Accused of ‘Triple Crown Race’ of Failures Amid Talk of Closing Fire Stations

DON'T MISS

Teacher Appreciation Week Surprises That Educators Will Love

DON'T MISS

A Mission of Mercy, Then a Fatal Strike: How an Aid Convoy in Gaza Became Israel’s Target

DON'T MISS

Walberg Era Begins With a Charge to ‘Revolutionize’ Bulldogs Basketball

DON'T MISS

California Man Sentenced to 40 Years to Life for Fatal Freeway Shooting of 6-Year-Old Boy

DON'T MISS

16 Clovis Students Rewarded With Scholarships for Their Resilience

UP NEXT

US Shoots Down Iran-Launched Attack Drones as Biden Team Pledges ‘Support’ for Israel

UP NEXT

Sacramento Gave Homeless Camp a Lease as an Experiment. Here’s What Happened.

UP NEXT

Merced Supervisors Accused of ‘Triple Crown Race’ of Failures Amid Talk of Closing Fire Stations

UP NEXT

Teacher Appreciation Week Surprises That Educators Will Love

UP NEXT

A Mission of Mercy, Then a Fatal Strike: How an Aid Convoy in Gaza Became Israel’s Target

UP NEXT

Walberg Era Begins With a Charge to ‘Revolutionize’ Bulldogs Basketball

UP NEXT

California Man Sentenced to 40 Years to Life for Fatal Freeway Shooting of 6-Year-Old Boy

UP NEXT

16 Clovis Students Rewarded With Scholarships for Their Resilience

UP NEXT

Dr. Green Thumb’s Is Open. Sweet Flower Debuts Saturday in Fresno Cannabis Rollout.

UP NEXT

Reacher Star Alan Ritchson Calls Donald Trump a ‘Rapist’

Sacramento Gave Homeless Camp a Lease as an Experiment. Here’s What Happened.

2 days ago

Merced Supervisors Accused of ‘Triple Crown Race’ of Failures Amid Talk of Closing Fire Stations

2 days ago

Teacher Appreciation Week Surprises That Educators Will Love

2 days ago

A Mission of Mercy, Then a Fatal Strike: How an Aid Convoy in Gaza Became Israel’s Target

2 days ago

Walberg Era Begins With a Charge to ‘Revolutionize’ Bulldogs Basketball

2 days ago

California Man Sentenced to 40 Years to Life for Fatal Freeway Shooting of 6-Year-Old Boy

2 days ago

16 Clovis Students Rewarded With Scholarships for Their Resilience

2 days ago

Dr. Green Thumb’s Is Open. Sweet Flower Debuts Saturday in Fresno Cannabis Rollout.

2 days ago

Reacher Star Alan Ritchson Calls Donald Trump a ‘Rapist’

2 days ago

Community Leaders Call for Transparency in Fresno Superintendent Search

2 days ago

How California Legislators Got More Than $1.4 Million in Travel and Gifts in 2023

Last June, more than half of California’s lawmakers — Republicans and Democrats alike, with no particular ideological preference — attended ...

18 hours ago

18 hours ago

How California Legislators Got More Than $1.4 Million in Travel and Gifts in 2023

18 hours ago

‘Digital Democracy’ Project Penetrates California’s Opaque Political Processes

1 day ago

US Shoots Down Iran-Launched Attack Drones as Biden Team Pledges ‘Support’ for Israel

2 days ago

Sacramento Gave Homeless Camp a Lease as an Experiment. Here’s What Happened.

2 days ago

Merced Supervisors Accused of ‘Triple Crown Race’ of Failures Amid Talk of Closing Fire Stations

2 days ago

Teacher Appreciation Week Surprises That Educators Will Love

2 days ago

A Mission of Mercy, Then a Fatal Strike: How an Aid Convoy in Gaza Became Israel’s Target

2 days ago

Walberg Era Begins With a Charge to ‘Revolutionize’ Bulldogs Basketball

MENU

CONNECT WITH US

Search

Send this to a friend