Southwest said Tuesday it is increasing its order for Boeing’s smallest 737 Max model by nearly three dozen planes, citing an improvement in travel demand. The Dallas-based airline said in a filing that will exercise options to increase its firm orders of 737 Max 7s by 34 planes, bringing its total order book for that plane to 234. The all-Boeing 737 airline also has orders for 149 Max 8 planes to be delivered through 2031, as the company retires older 737s. Southwest expects its 2022 capital expenditures to total $1.5b, up from a previous estimate of $700m. United and Alaska Airlines have also increased their Boeing Max orders in recent months, helping boost demand that dried up after the planes were grounded in 2019 after two fatal crashes. US regulators lifted the grounding last November. Southwest said it expects demand and revenue to continue to improve into July as vacationers return to air travel, pushing leisure fares up to 2019 levels.<br/>
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Brazilian low-cost carrier Gol will acquire compatriot and regional operator MAP Linhas Aéreas, in a R$28m ($5.56m) deal that will give Gol a boost in its domestic network. The acquisition — announced late 8 June — comes as Gol taps into “unparalleled market opportunity for rational consolidation” in the country’s airline market, which has been battered by the coronavirus outbreak. Gol CE Paulo Kakinoff adds that the move is also part of broader airline strategy “of expanding network and capacity, as we look to revitalise air travel demand among leisure and business passengers”. The acquisition, which is subject to regulatory approval, is expected to grow Gol’s presence at Sao Paolo Congonhas airport, the country’s largest domestic gateway, as well as at Manaus airport. MAP serves the country’s south and south-west through Congonhas, while it operates to the Amazon region via Manaus. Gol discloses that post-merger, its Congonhas capacity is expect to grow about 10%, with the additional of 26 daily flights from the airport. “Thus, the company will be able to serve new destinations connecting South America’s largest city to historically underserved domestic markets, as the restrictions resulting from the pandemic are reduced or eliminated,” Gol adds. <br/>
Ryanair is to double the number of planes it has based at Rome Fiumicino airport, the main hub of struggling rival Alitalia, the Irish airline announced in a statement on Tuesday. Ryanair will increase the number of planes it has based at the airport from three to six this summer, it said. The airline will base 14 Boeing 737 jets in Rome between Fiumicino and Ciampino airports for the summer season. <br/>
Australia’s Regional Express has revised its full-year earnings forecast — from breaking even to a pre-tax loss — as a resurgence in coronavirus cases has forced a significant number of flight cancellations. In its latest guidance, issued on 9 June, the carrier now expects a pre-tax statutory loss of A$15m ($11.6m) for the year ended 30 June. “The latest Covid-related state border restrictions and lockdowns have severely disrupted Rex’s domestic and regional networks, forcing Rex to cancel a large number of flights to/from Melbourne,” the airline states. As recent as 10 May, Rex was optimistic of its earnings prospects, disclosing that it was hopeful of a breakeven scenario for the full year. Rex stated in a business update then that its cash position has “improved exponentially”, with its unencumbered cash reserves increasing tenfold compared to March 2020, as a result of strong forward bookings. Since then, a spike in coronavirus cases in late May in Melbourne and the state of Victoria prompted the state, Australia’s second most populous, into a snap lockdown for a week. <br/>