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Southwest Airlines reduces hiring due to delays in Boeing aircraft

Southwest Airlines

Southwest Airlines is scaling back its 2023 hiring targets due to delays in new Boeing aircraft.

CEO Bob Jordan said it initially intended to recruit 7,000 people but now has to “moderate” its targets.

However, the company didn’t detail how much it’ll need to reduce its hiring goals.

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Jordan said the carrier strives to be “prudent” about its delivery expectations, which have been frequently delayed.

The airline hopes to receive just 70 new 737 Max planes from Boeing this year, down from a previous estimate of 90.

The reduction will limit its capacity growth ambitions by one percentage point.

Southwest Airlines is one of Boeing's top clients, operating an all-737 fleet. 

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It has 564 Boeing 737 Max planes on order till the end of the decade.

These aircraft are more fuel-efficient and will be used to replace older planes while helping the company's growth.

Jordan said: “You plan way in advance to set your schedules, to set your capacity, and you’re wrong. It’s just really difficult to change that close in.”

Because of the delays, COO Andrew Watterson said the carrier planned to cut flying schedules in the final few months of the year.

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Boeing recently said it plans to boost the manufacture of 737 Max planes to 38 a month this year from a present monthly rate of around 31.

It is a long-planned increase that has been pushed back due to supply chain issues and labor shortages.

American Airlines CEO Robert Isom also complained about delivery delays when the competitor airline reported quarterly results on Thursday, April 27.

Source: CNBC

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