Allegiant has revised its expectations for the Boeing 737 MAX aircraft, cutting back on the number of deliveries anticipated for this year. The airline is now expecting to receive six 737 MAXs in 2024.
This adjustment is down from the originally planned 12 deliveries. The first of these aircraft is now expected to begin revenue service in the third quarter, almost a year behind schedule.
The decision to cut back on the delivery schedule comes amid ongoing production and quality control issues at Boeing, which have significantly impacted the timely delivery of 737 MAX aircraft to airlines.
“We are updating our delivery expectations and planning the business for delivery of six aircraft this year rather than the 12 previously communicated,” added the airline’s finance chief Robert Neal during a first-quarter earnings call on Tuesday. Neal noted that these were not based on estimates by Boeing, but rather on the airline’s “best estimate.”
The ongoing delivery delays have broader implications for Allegiant, as it has already invested in preparing for the arrival of the new aircraft type. Prior to the aircraft entering service, the airline incurred costs related to training pilots on the new type, planning its network, and making other necessary preparations.
The delay in deliveries has also contributed to Allegiant’s recent financial performance, with the company reporting a $919,000 loss in the first quarter of 2024.
The Las Vegas-based airline holds unfilled orders for 50 737 MAX and options for a further 80 of the Boeing narrowbodies, as it moves away from its status as an all-Airbus operator.
