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Southwest to take delivery of 35 737 MAX jets through end-2021

Published 12/16/2020, 07:13 AM
Updated 12/16/2020, 07:15 AM
© Reuters. FILE PHOTO: A number of grounded Southwest Airlines Boeing 737 MAX 8 aircraft are shown parked at Victorville Airport in Victorville, California
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(Reuters) - Southwest Airlines (NYSE:LUV) Co said on Wednesday it expects to take delivery of 35 737 MAX aircraft from Boeing (NYSE:BA) Co through the end of 2021.

The deliveries include 16 leased aircraft, the U.S. carrier said https:// adding that it expects the MAX to return to revenue service in March after all active pilots have received updated, MAX-related training.

"Given the continued surge in COVID-19 cases and depressed revenue environment, the company continues to experience softness in leisure passenger demand and bookings for December 2020," Southwest said in a regulatory filing.

The company also flagged elevated levels of trip cancellations for December travel.

Southwest now expects average daily core cash burn to be about $12 million in the fourth quarter, up from a previous estimate of between $10 million and $11 million.

Several U.S. airlines have raised their daily cash burn forecast due to this year's coronavirus-driven collapse in travel, as a batch of new lockdowns and advisories discourage Christmas and New Year flying.

© Reuters. FILE PHOTO: A number of grounded Southwest Airlines Boeing 737 MAX 8 aircraft are shown parked at Victorville Airport in Victorville, California

The company's shares fell 1.2% to $45.88 in premarket trade.

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