Southwest Airlines shares took a hit on Tuesday after the company announced plans to reduce capacity and reassess its financial outlook due to fewer expected aircraft deliveries from Boeing, its supplier. According to a regulatory filing, Boeing is now expected to deliver 46 737-8 planes this year, significantly lower than the 79 737 Max aircraft deliveries initially anticipated by Southwest.
Southwest also disclosed that it does not foresee any 737-7 aircraft deliveries and assumes that no 737-7 planes will be put into service this year, citing ongoing certification issues with the Federal Aviation Administration.
