Southwest Airlines orders 34 more 737 MAX aircraft from Boeing

posted on 8th June 2021 by Eddie Saunders
Southwest Airlines orders 34 more 737 MAX aircraft from Boeing

Southwest Airlines said on Tuesday it had ordered 34 new Boeing Co 737 MAX 7 aircraft to receive in 2022, as the U.S. airline prepares for a vaccine-driven recovery in travel demand.

The move lifts the carrier’s firm orders for the MAX 7 aircraft to 234 planes in total.

The mass rollout of Covid-19 vaccines and easing travel restrictions have bolstered hopes of a rebound in bookings for U.S. carriers after they suffered heavy losses in 2020.

Southwest on Tuesday also tightened its second-quarter average core cash burn forecast to between $1 million and $2 million per day, compared with the previous range of $1 million to $3 million per day.

Cash burn, a measure that U.S. airlines began providing in 2020 to measure liquidity in light of the pandemic, was about $2 million per day in May.

The company said it continues to expect revenue to improve in June from a month earlier, driven by higher leisure passenger traffic and fares.

“Passenger demand and booking trends remain primarily leisure-oriented,” it said in a statement.