Southwest Adjusts Boeing MAX Orders and Shifts from 737-7 to -8 Amid Delays

Southwest Airlines, the largest customer of Boeing’s 737 MAX family, has announced that it will convert some of its orders for the smallest variant, the 737-7, to the larger and more popular 737-8, due to certification delays.

According to an SEC filing on Friday, Southwest has exercised options for 30 MAX 7 planes to be delivered in 2022, and converted 24 existing MAX 7 orders to MAX 8. This means that Southwest now has 200 firm orders for the MAX 7 and 149 for the MAX 8, with options for another 270 MAX aircraft for years 2022 through 2029.

The conversion comes after Boeing revealed that the first delivery of the MAX 7, which can seat up to 172 passengers, has been pushed back to 2024. The MAX 7 has faced multiple challenges in getting certified by the Federal Aviation Administration (FAA), along with the larger MAX 10 and the 777X.

Southwest’s CEO Bob Jordan said in March that he was not counting on the MAX 7 being delivered this year, but the latest news from Boeing confirmed his doubts. By switching to the MAX 8, which can seat up to 200 passengers and is already certified, Southwest hopes to receive new aircraft faster and meet the growing demand for air travel.

The conversion could also affect the confidence of other carriers in the MAX 7, as Southwest is one of its biggest buyers. Boeing has seen its order book shrink due to cancellations and conversions of its troubled aircraft models.

Sources: AirGuide Business airguide.info, msn.com, southwestairlinesinvestorrelations.com