Just a day after Boeing, its U.S. competitor, Airbus announced the company's orders and deliveries figures for 2023. Deliveries Reached…
Allegiant ‘Uncertain’ on First 737 MAX Deliveries
The ULCC is the latest airline to experience Boeing delivery woes as it looks to grow its all-Airbus fleet.
Ultra-low-cost carrier Allegiant now expects to take delivery of its first 737 MAX nearly four months late. In a Q4 2023 earnings call on Monday, the Las Vegas-based company said it initially expected to receive its first 737 MAX in the first week of 2024. With recent production and quality control woes at Boeing, Allegiant is eyeing a late March or early April delivery.
“As you might expect, we are actively discussing with Boeing changes to our 737 MAX delivery schedule for 2024. At the time of our last investor update, we were expecting to take delivery of our first MAX aircraft in the first week of 2024. As of now, we are estimating that deliveries will begin in late March or early April,” said Drew Wells, Allegiant’s Senior Vice President and Chief Revenue Officer, in prepared remarks during the earnings call.
Allegiant has up to 130 Boeing 737 MAX 7 and 737 MAX 8200 variants on order, according to Aviation Week. In October 2023, the airline updated its order to include additional options for the Boeing aircraft.
“Our current estimates differ from contractual commitments,” Wells continued. The airline says it is “conservatively planning” to receive 12 737 MAX aircraft in 2024, placing into service 10.
Citing uncertainty around the 737 MAX deliveries, the airline stopped short of providing full-year 2024 financial guidance to analysts during the call. Although Allegiant says it remains confident in Boeing, it is being “flexible” in its 2024 capacity planning as a result of the delivery hiccups.
“While Boeing deliveries will be delayed based on recent news and comments, we are excited about our introduction of the MAX 8200 aircraft. It’s one of the most reliable airplanes in the world. Its performance profile as well will provide us enhanced economic benefits in the coming years,” Allegiant chief Maurice Gallagher added.
The airline plans to equip its 737 MAX jets with Allegiant Extra, which offers six inches of additional legroom along with a handful of other enhancements. Allegiant is concurrently configuring its Airbus aircraft with the new product offering.
Allegiant joins a growing list of airlines being more nimble in future capacity planning as a result of Boeing’s production woes. Last month, United said it removed the 737 MAX 10 – the aircraft type’s largest variant – from its future fleet plans.
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