Southwest Airlines has placed an order for an additional 108 Boeing 737-7 Max jets. Southwest is the launch customer for the variant and it has increased its orderbook to more than 300, according to Boeing.
The 737-7 has the longest range in its class, capable of flying up to 3,800 nautical miles and carrying up to 172 passengers, according to Boeing.
"This sets us up for orderly and measured growth and gives us flexibility to adapt in a dynamic environment, and we have a lot of options as we move forward," Southwest CEO Bob Jordan said during Thursday's Q3 earnings call.
Southwest's Q3 metrics
Southwest reported record third-quarter revenue of more than $6.5 billion, a 4.9% increase year over year. Passenger revenue for the quarter was $5.9 billion, a 5.3% increase. Net income was $193 million, down from $277 million.
Fourth-quarter guidance includes a capacity increase of about 21%. For the year, Southwest projects capacity to increase 14-15%.
The carrier now is flying its full fleet and in the fourth quarter is completing the restoration of its network, Jordan said. As Southwest moves into 2024, it is slowing capacity growth "to absorb current capacity, mature development markets and optimize schedules to current travel patterns." The company now projects Q1 2024 capacity growth of 10-12%, which is a reduction from previous estimates of 14-16%, Jordan said.
Source: Business Travel News