Boeing’s troubles are spilling over to its airline customers

After three years of scrambling to hire and train pilots, United Airlines is encouraging its aviators to take unpaid time off next month, the latest example of how woes at Boeing - including delays in aircraft delivery - are rippling through the aviation industry. Production limits imposed on Boeing after a piece of the wall blew off an Alaska Airlines plane midflight in January are in part responsible for the delays, which are forcing carriers to halt hiring and rethink schedules even as demand for air travel remains robust. Southwest, which operates an all-Boeing fleet, had anticipated receiving 58 Boeing 737 Max 8 aircraft but will instead receive 46. Boeing’s continued challenges, Southwest said in a regulatory filing, may require it to reduce the number of seats it offers and rethink its capital spending program, which includes investments in aircraft and technology upgrades. As a result, Southwest said it would pause hiring, including for pilots and flight attendants, as it revamps its schedule for the second half of the year. The carrier said it will offer updated guidance for 2024 operations during its earnings call this month. United has also paused pilot hiring for May and June, though it may resume in July. “As you know, United has hundreds of new planes on order and while we remain on a path to be the fastest growing airline in the industry, we just won’t grow as fast as we thought we would in 2024 due to continued delays at Boeing,” the carrier said in a memo to employees. “For example, we had contractual deliveries for 80 Max 10s this year alone - but those aircraft aren’t even certified yet and it’s impossible to know when they will arrive.” A note sent by union officials to United pilots last week cited “recent changes to our Boeing deliveries” as a reason for the voluntary time off programs. The airline confirmed the offer saying the voluntary time off programs will be used to reduce excess staffing for the month of May.<br/>