- The CEOs of Southwest Airlines and American Airlines some want Boeing to present planes connected time.
- Both CEOs, successful nan past week, opportunity their companies person been affected by Boeing transportation delays.
- Boeing is facing respective challenges and reported a third-quarter nett nonaccomplishment of $6.1 cardinal past week.
Thanks for signing up!
Access your favourite topics successful a personalized provender while you're connected nan go.
By clicking “Sign Up”, you judge our Terms of Service and Privacy Policy. You tin opt-out astatine immoderate clip by visiting our Preferences page aliases by clicking "unsubscribe" astatine nan bottommost of nan email.
The chiefs of 2 awesome airlines person a connection for Boeing: Do better.
In nan past week, Southwest CEO Bob Jordan and American Airlines main Robert Isom person some talked astir nan challenges their airlines person faced pinch Boeing.
"Boeing has been a awesome partner for nan full 53 years of Southwest Airlines, but we request Boeing to beryllium strong. We request Boeing to beryllium better," Jordan said successful an question and reply pinch Yahoo Finance connected Monday.
Jordan said Southwest had primitively expected much than 80 level deliveries from Boeing successful 2024 but now will person only 20. He added that while 2024 was particularly tough, it's been years since Boeing deliveries went arsenic expected for nan airline.
"With nan onslaught lingering on, you know, it looks for illustration 2025 could beryllium affected arsenic well," he said.
"The bosom of an hose is nan formation schedule, and nan formation schedule depends connected getting your craft connected time," he added.
Jordan besides said that Southwest, which exclusively uses Boeing aircraft, is "constantly reviewing" nan marketplace but is not actively looking into moving pinch different level manufacturers.
Southwest's fleet consists of 228 Boeing 737 Max 8s, 381 Boeing 737-800s, and 207 Boeing 737-700s, according to aviation website FlightRadar24.
Jordan's comments echo those Isom made past week.
"For Boeing — it's just, I look guardant to nan time erstwhile they're not conscionable a distraction," Isom said during a Thursday interview connected CNBC's "Squawk Box."
"We've been struggling pinch them for complete nan past 5 years," Isom added.
Isom told CNBC that his institution needs Boeing "to beryllium strong" — and that he's communicated that connection to nan planemaker's caller CEO, Kelly Ortberg.
"At nan extremity of nan day, though, we request them to present value craft connected time, and I'll beryllium welcoming that telephone telephone erstwhile Boeing says: 'We're going to do that,'" he added.
When contacted for comment, a Boeing spokesperson said nan institution has antecedently acknowledged transportation delays and that early deliveries are limited connected nan onslaught being resolved.
Southwest reported earlier this twelvemonth that it expected to person astir 20 Boeing 737 Max 8. The announcement followed a accumulation slowdown astatine Boeing aft a door plug blew disconnected a Boeing jet during an Alaska Airlines formation successful January.
Adding to nan challenges astatine Boeing, labor person been connected onslaught since mid-September, pinch analysts estimating nan activity stoppage is costing nan institution $50 cardinal a day. The institution reported a third-quarter nett nonaccomplishment of $6.1 cardinal past week.
The situation has made Boeing bleed cash. The shaper announced connected Monday that it is offering 90 cardinal communal shares and astir $5 cardinal worthy of depositary shares for sale. Based connected Friday's closing stock value of $155.01, nan caller offering is worthy astir $18.95 billion.
Its banal is down 40% twelvemonth to date.
This month, Boeing made an SEC filing, saying it whitethorn waste up to $25 cardinal worthy of securities, including bonds, caller shares, and banal options.
That's successful summation to nan $10 cardinal in installments agreement it entered into pinch Bank of America, Citibank, Goldman Sachs, and JPMorgan Chase, described successful a regulatory filing connected October 14.
Southwest did not respond to a petition for remark from Business Insider.