Airline tickets could get more expensive amid the Boeing 737 Max fallout
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Airlines including United, Delta, Southwest, and Alaska may see higher ticket prices amid the Boeing 737 Max fallout. Executives from several US carriers expressed doubt about the Boeing 737 Max delivery schedule. Southwest expects 42% fewer jets this year and United told Boeing to stop making the Max 10. The slowdown in production has prompted airlines to cut flying, likely resulting in higher airfares. Customers may soon feel the impact of the Boeing 737 Max blowout as airlines face uncertainty about their future fleets. Southwest will only receive 46 of the previously planned 79 Max 8 variants it hoped to get this year, representing a 42% decrease. United will build an 'alternative plan' for its fleet that doesn't include the Max 10. Delta Air Lines CEO expressed doubt over the Max 10 timeline. Alaska Airlines said its schedule is 'in flux' as it evaluates Boeing's production stall. The decrease in available aircraft means airlines are forced to cut flying, likely resulting in higher airfare to make up for the lost revenue. Ryanair CEO warns of slightly higher airfares this summer due to Max delivery delays. Airlines are likely to capitalize on this year's strong demand and limit the number of seats sold at the lowest price points for peak summer travel. Low-cost competition from the likes of Frontier and Spirit Airlines will prompt the majors to offer 'basic economy' fares on some flights. Airlines may look to Airbus to grow their fleets as a remedy. Delta and United have more flexibility in their diverse fleets. Airbus is already bottlenecked and cannot physically manage the global demand for airliners.
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https://www.businessinsider.com/airline-ticket-prices-increase-boeing-737-max-airfare-deals-2024-3