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Southwest Airlines shows patience with aircraft delivery delays – for now

Premium Analysis

For many US airlines 2Q2022 was a study in contrasts. Leisure demand came roaring back, which resulted in the country's airline operators posting record revenue. But high fuel costs, staffing and operational challenges cast dark clouds over the robust revenue environment.

Southwest Airlines was among the US operators posting record revenues, and although there are some shifts occurring in consumer and business sentiments, the airline believes that demand trends will remain strong.

But in addition to the challenges US airlines face with labour and operations, Southwest is now bracing for a dramatic decrease in the number of aircraft that Boeing will deliver to the airline in 2022.

For now, Southwest believes it can manage the delays; but if the airframer cannot catch up on those aircraft deliveries over time, it could create more headwinds for the airline.

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