Allegiant Air, a Las Vegas-based ultra-low-cost carrier, has revised its expectations for Boeing’s delivery schedule, significantly cutting the number of 737 MAX planes it anticipates receiving this year. The airline now plans to integrate six aircraft into its fleet by the end of 2024, a reduction from the previously expected twelve. This update was announced by Allegiant’s finance chief, Robert Neal, during a first-quarter earnings call.
“We are updating our delivery expectations and planning the business for delivery of six aircraft this year rather than the 12 previously communicated,” Neal stated, highlighting the adjustment in the airline’s strategy. This shift marks the second time Allegiant has had to defer its order from Boeing, as operational challenges continue to impact the manufacturer’s production capabilities.
The delay extends the introduction of the 737 MAX to Allegiant’s operations to the fourth quarter of the year, a three-month setback from the initial schedule. The inaugural flight of the aircraft is now slated for October 2. These adjustments are symptomatic of broader issues at Boeing, which has faced multiple operational disruptions in recent times.
The delivery of the 737 MAX is particularly significant for Boeing, as it seeks to stabilize its operations and reassure stakeholders. Allegiant primarily services major carriers such as United Airlines and Southwest Airlines with the 737 model, and the addition of Allegiant as a new customer for the 737 MAX was viewed as a key development for Boeing amidst its current challenges. The unfolding situation underscores the interconnected challenges and adjustments within the aviation sector, impacting both manufacturers and carriers alike.