Dallas-based Southwest airline announced that they ordered 34 additional Boeing 737 Max 7s for their fleet. The additional 34 737 Max model brings Southwest’s total planes to 234. Also, Southwest expects 149 Max 8 planes by 2031 just in time for the retirement of their older 737 units.
Southwest estimates their 2022 capital expenditure to reach $1.5 billion. It’s more than double compared to their previous estimate of $700 million.
Southwest Airlines isn’t the only airline investing in Boeing Max planes. United Airlines and Alaska Airlines also made their Boeing Max orders a few months ago.
Boeing announced on Tuesday that the company delivered 10 737 Max in May. This was a much higher number compared to four units in April as Boeing was able to solve electrical issues on the 737 Max.
Travel Demand Picks Up
As more people get vaccinated, Southwest expects travel demand to continue to pick up until July. It could potentially reach the 2019 level if the forecast is correct. However, a large chunk of today’s travel demand comes from domestic flights.
International flights, on the other hand, remain low since not all countries have a high vaccination rate like in the US. However, there are signs that things could improve soon.
Recently, airline and airport executives from both US and UK urged President Biden and Boris Johnson to resume transatlantic flights. Given the vaccination rates of both the US and UK, airline and airport executives want leaders to discuss the resumption of US-UK flights this summer season.
On the other hand, EU countries are now welcoming vaccinated tourists from America. Spain and France are among the latest countries that opened their borders to vaccinated Americans. Travelers from the US will have to present a QR code from the Spain Travel Health portal plus a vaccine certificate to prove that they’ve completed their vaccination 14 days before arriving. Children under 6 years old can enter without special requirements as long as they travel with vaccinated parents.
