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Delta (DAL) Sees Boeing 737 MAX 10 Delivery Extension to 2027
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Delta Air Lines (DAL - Free Report) believes that the scrutiny currently being faced by Boeing (BA - Free Report) from regulators will result in it getting deliveries of 737 Max 10 planes not before 2027. This was stated by Delta’s CEO Ed Bastian in an interview to Bloomberg.
We remind investors that DAL had announced in 2022 that it would buy 100 Boeing 737 Max 10 jets with options to buy another 30. At that time, it expected the planes to get delivered from 2025 onward. Delta, currently carrying a Zacks Rank #3 (Hold), currently does not fly any of the MAX variants. This 737-10 model is Boeing's largest Max plane with a maximum seating capacity of 230 passengers.
Delivery from Boeing is being delayed as it strives to ensure that each of its planes meets all regulatory standards. We note that Boeing has been under the scanner ever since Alaska Airlines’ Ontario, CA-bound flight (1282) on Jan 5, 2024, saw a panel and window being blown out of the Boeing 737 MAX 9 jet shortly after takeoff from Portland, OR. Alaska Airlines is a wholly-owned subsidiary of Alaska Air Group (ALK - Free Report) .
Following the scary mid-air incident, Federal Aviation Administration or FAA had ordered a temporary grounding of 171 Boeing 737 MAX 9 jets across the globe for safety-related inspection. FAA lifted the above-mentioned order on Jan 24. The approval was contingent on new inspection and maintenance checks. FAA has clarified that Boeing is prohibited from expanding 737 MAX production or adding production lines until quality improvements are implemented.
We note that the ongoing crisis at Boeing has hurt the fleet-related plans of carriers other than Delta as well. In a regulatory filing, Southwest Airlines’ (LUV - Free Report) management stated that it has been advised by Boeing to expect 46 737-8 jets in 2024, compared with the earlier expectation of 79 737 MAX jets, which included 58 MAX 8 planes.
Moreover, Southwest Airlines does not assume any Boeing 737 MAX 7 planes to get delivered this year. LUV continues to assume that no 737 MAX 7 plane will be placed into service in 2024 based on the current certification status.
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Delta (DAL) Sees Boeing 737 MAX 10 Delivery Extension to 2027
Delta Air Lines (DAL - Free Report) believes that the scrutiny currently being faced by Boeing (BA - Free Report) from regulators will result in it getting deliveries of 737 Max 10 planes not before 2027. This was stated by Delta’s CEO Ed Bastian in an interview to Bloomberg.
We remind investors that DAL had announced in 2022 that it would buy 100 Boeing 737 Max 10 jets with options to buy another 30. At that time, it expected the planes to get delivered from 2025 onward. Delta, currently carrying a Zacks Rank #3 (Hold), currently does not fly any of the MAX variants. This 737-10 model is Boeing's largest Max plane with a maximum seating capacity of 230 passengers.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delivery from Boeing is being delayed as it strives to ensure that each of its planes meets all regulatory standards. We note that Boeing has been under the scanner ever since Alaska Airlines’ Ontario, CA-bound flight (1282) on Jan 5, 2024, saw a panel and window being blown out of the Boeing 737 MAX 9 jet shortly after takeoff from Portland, OR. Alaska Airlines is a wholly-owned subsidiary of Alaska Air Group (ALK - Free Report) .
Following the scary mid-air incident, Federal Aviation Administration or FAA had ordered a temporary grounding of 171 Boeing 737 MAX 9 jets across the globe for safety-related inspection. FAA lifted the above-mentioned order on Jan 24. The approval was contingent on new inspection and maintenance checks. FAA has clarified that Boeing is prohibited from expanding 737 MAX production or adding production lines until quality improvements are implemented.
We note that the ongoing crisis at Boeing has hurt the fleet-related plans of carriers other than Delta as well. In a regulatory filing, Southwest Airlines’ (LUV - Free Report) management stated that it has been advised by Boeing to expect 46 737-8 jets in 2024, compared with the earlier expectation of 79 737 MAX jets, which included 58 MAX 8 planes.
Moreover, Southwest Airlines does not assume any Boeing 737 MAX 7 planes to get delivered this year. LUV continues to assume that no 737 MAX 7 plane will be placed into service in 2024 based on the current certification status.