Southwest Hits Brakes on Max Deliveries, Settles Boeing Dispute
- Airline reaches settlement with Boeing over 2020 Max delays
- Carrier joins rivals by reducing winter revenue outlook
Southwest also reduced its forecast for December operating revenue to be as much as 75% below a year earlier.
Photographer: Patrick T. Fallon/BloombergSouthwest Airlines Co. cut the number of 737 Max jets it will take through next year to 35, as it joined other carriers in reducing revenue forecasts amid a nationwide surge in coronavirus cases.
Southwest, the largest operator of the Boeing Co. aircraft, also settled with the manufacturer over deliveries scuttled this year, after the plane was grounded following two crashes that killed 346 people. While the terms of the agreements are confidential, delivery credits and other factors mean Southwest will have “an immaterial amount” of capital spending for aircraft this quarter and for all of 2021, the airline said in a regulatory filing.