Southwest Airlines orders 34 new 737 MAX 7 aircraft

Southwest Airlines said on Tuesday it had ordered 34 new Boeing Co 737 MAX 7 aircraft to receive in 2022, as the U.S. airline prepares for a vaccine-driven recovery in travel demand, Reuters reports.

The move lifts the carrier’s firm orders for the MAX 7 aircraft in 2022 to 234 planes.

The mass rollout of vaccines and easing travel restrictions have bolstered hopes of a rebound in bookings for U.S. carriers after they suffered heavy losses in 2020.

Southwest on Tuesday also tightened its second-quarter average core cash burn forecast to between US$1 million and US$2 million per day, compared with the previous range of US$1 million to US$3 million per day.

Cash burn, a measure that U.S. airlines began providing in 2020 to measure liquidity in light of the pandemic, was about US$2 million per day in May. The company said it continues to expect revenue to improve in June from a month earlier, driven by higher leisure passenger traffic and fares.

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