Southwest hits brakes on Max deliveries, settles Boeing dispute

Southwest cut the number of 737 Max jets it will take through next year to 35, as it joined other carriers in reducing revenue forecasts amid a nationwide surge in coronavirus cases. Southwest, the largest operator of the Boeing Co. aircraft, also settled with the manufacturer over deliveries scuttled this year, after the plane was grounded following two crashes that killed 346 people. While the terms of the agreements are confidential, delivery credits and other factors mean Southwest will have “an immaterial amount” of capital spending for aircraft this quarter and for all of 2021, the airline said in a regulatory filing. The announcements Wednesday reflect adjustments that airlines are making worldwide: first to the Max’s extended flight ban, and then to a coronavirus pandemic that has gutted demand for travel and shows no sign of letting up in the near term. The 35 Max planes that Southwest will receive include seven expected this month and just 28 next year. The carrier in April cut delivery plans to as many as 48 through 2021. At one point, Southwest was on tap to get 123 of the workhorse narrow-body jet over the period.<br/>