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Market Chatter: Southwest Airlines CEO 'Wouldn't Be Surprised' If Boeing Fails to Meet Deliveries in 2025
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Market Chatter: Southwest Airlines CEO 'Wouldn't Be Surprised' If Boeing Fails to Meet Deliveries in 2025
Nov 13, 2024 11:30 AM

02:04 PM EST, 11/13/2024 (MT Newswires) -- Southwest Airlines ( LUV ) Chief Executive Bob Jordan told Bloomberg Wednesday that he "wouldn't be surprised" if Boeing ( BA ) is unable to meet its delivery commitments next year.

Jordan said in an interview his company expects a "more conservative number" of planes than what Boeing ( BA ) estimates it can deliver due to a prolonged strike at the plane maker this year.

Southwest's ( LUV ) order book calls for 86 aircraft deliveries in 2025, but the carrier has lowered that number to 73, according to Bloomberg.

Southwest Airlines ( LUV ) had factored in a strike of up to five weeks, but it lasted for more than seven, the report said. Jordan said that with workers back to work, it would still take Boeing ( BA ) 30 to 60 days to return to normal assembly rates.

The CEO warned that Southwest ( LUV ) may have to rethink its capacity if Boeing ( BA ) goes below certain output.

Southwest Airlines ( LUV ) told MT Newswires Monday that it began offering departure packages and extended leaves to airport staff due to aircraft delivery delays.

Boeing ( BA ) did not immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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