Southwest Airlines Slashes Boeing Jet Delivery Forecast Again

Southwest Airlines has once again reduced its expected aircraft deliveries from Boeing, citing a decrease in capacity for the second half of 2024. The airline now anticipates 46 737-8 jets, down from the previous estimate of 79, due to regulatory constraints on Boeing's production. This adjustment comes in the wake of a midair panel blowout incident and a subsequent FAA audit that revealed multiple issues with Boeing's 737 MAX production. The ripple effect of these challenges is impacting the airline industry, with Southwest's rival United Airlines considering purchasing more A321neo jets from Airbus to compensate for potential delays in Boeing's 737 MAX 10 certification. Southwest's shares fell 5% in premarket trading, while Boeing's stock dropped 1% following the news.