Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Southwest CEO says airline is not looking to expand its fleet

Published 11/16/2020, 01:07 PM
Updated 11/16/2020, 01:40 PM
© Reuters. FILE PHOTO: Southwest Airlines planes are seen at LAX airport in Los Angeles

By Tracy Rucinski

(Reuters) - Southwest Airlines (N:LUV) is eyeing Boeing (NYSE:BA) 737 MAX jets which have lost their original buyers, the so-called "white tails," Chief Executive Gary Kelly said on Monday, but has no plans to increase the size of its fleet as it continues to weather the COVID-19 crisis.

"No one should think Southwest is gonna get 50 more airplanes than what they were planning on in terms of incrementing the fleet," Kelly said on an aviation webinar. "That'd be crazy. We're not thinking about that at all."

Low-cost carrier Southwest has parked between 150 and 200 jets as travel demand wanes in the pandemic, but as it plans its fleet make-up over the next decade or two, it wants to make a decision soon about refreshing its aging 737-700 jets with 143 seats.

Kelly said the airline is debating between the Boeing 737 MAX-7, which has yet to come out and be certified, or European planemaker Airbus's (PA:AIR) A220s, which would mean a shift away from its all-Boeing fleet for the first time.

The Boeing 737 MAX has suffered a setback following two fatal crashes that sparked a massive safety review and a global grounding of the models that were in service before the crashes. U.S. regulatory approval is expected this week for those jets to fly again after nearly two years.

"If we get what we need on the MAX, then it makes it more difficult for the A220, but I think Boeing and Airbus understand that's (737-700) a very important airplane for us," Kelly said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

While there's some flexibility on the timing of a decision, Kelly said the airline "absolutely needs a solution for that the over the next several years and as far as I'm concerned the sooner we make up our minds on that the better."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.