💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Southwest Airlines orders 40 Boeing 737 MAX jets worth $4.68 billion

Published 04/27/2018, 12:21 AM
Updated 04/27/2018, 12:31 AM
© Reuters. Boeing celebrates the 10,000th 737 to come off the production line in Renton
BA
-
LUV
-

(Reuters) - U.S. carrier Southwest Airlines (N:LUV) has ordered 40 Boeing Co (N:BA) 737 MAX 8 jets worth $4.68 billion at list price to help modernise its fleet, the airline said.

It converted options it held over the jets into firm orders, with 10 to be delivered each year from 2019-2022, Southwest said in a statement on Thursday announcing its first-quarter earnings.

"This is first and foremost an extension of our fleet modernisation strategy," Southwest chief executive officer Gary Kelly told analysts on a post-earnings conference call, according to a transcript.

"We have a very strong business case to replace older 737-700 aircraft given the superior operating economics of the MAX 8."

Southwest is the world's largest operator of 737 jets, with more than 700 of the airplanes.

The airline on Thursday warned the consequences of a mid-air engine explosion on a 737-700 last week will weigh on second-quarter bookings, as investigators probe the events that led to the first passenger death in the airline's history.

© Reuters. Boeing celebrates the 10,000th 737 to come off the production line in Renton

Southwest posted first-quarter profit of $438 million, excluding special items, up from $372 million a year earlier.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.