Southwest cuts back capacity but boosts Boeing MAX order

Southwest Airlines has lowered capacity plans for the first quarter of 2024 and also for the rest of the coming year. The airline is guiding a capacity increase for Q1 of 10-12 percent compared to the previous 14-16 percent. Southwest lowers its guidance despite expecting fifteen more Boeing MAX 8s this year than it planned for earlier. But Southwest has added 216 MAX 7s and -8s to the unfilled orders and options and has swapped models.

Southwest has published its flight schedule until August 4, 2024, which includes 30 new routes from amongst others Orlando and new non-stop services from Burbank, Colorado Springs, Dallas, and Nashville. But after a review of its fleet plans and its Boeing order, Q1 capacity has been revised and lowered to 10-12 percent. “As we move into 2024, we are slowing our ASM growth rate to absorb current capacity, mature development markets, and optimize schedules to current travel patterns,” CEO Robert Jordan says in the earnings release.