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Southwest (LUV) Eyes a March Comeback for Boeing 737 MAX Jets
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Southwest Airlines (LUV - Free Report) with the maximum exposure to Boeing 737 MAX planes among the U.S. carriers expects to resume commercial flight services using the jets in March 2021. Notably, last month, decks were cleared for the aircraft, which has remained grounded since March 2019, by the Federal Aviation Administration (FAA) to restart its commercial operations.
However, certain requirements have to be met before the planes can recommence services. Notably, Southwest Airlines is currently working with the FAA on various issues like installing FAA-approved flight control software updates and implementing the need for the FAA-required pilot training. Fulfilling all these conditions, Southwest Airlines anticipates to finally fly its Boeing 737 MAX planes approximately four months after receiving clearance from the FAA.
In fact, the Dallas-based carrier aims to increase the number of Boeing 737 MAX planes in its fleet beyond the current strength of 34. To this end, the airline inked a deal with TheBoeingCompany (BA - Free Report) to take delivery of 35 delayed MAX 8 planes by Dec 31, 2021. Of the 35 MAX 8 planes, 16 are leased.
However, Southwest Airlines does not wish to expand its total fleet size in 2021 beyond the 2019 level of 747 planes. The static size is due to the planned retirements of the 737-700 aircraft from its fleet.
Moreover, despite the anticipated deliveries, the company, currently carrying a Zacks Rank #3 (Hold), expects to incur an immaterial amount toward aircraft capital expenses in fourth-quarter 2020 as well as in 2021. This is because of “certain delivery credits provided in the Boeing Agreement, as well as progress payments made to date on undelivered aircraft.”
While Southwest Airlines does not expect to resume its commercial operations with the Boeing 737MAX jets before March, American Airlines (AAL - Free Report) will do so much earlier, achieving the privilege of becoming the first U.S. carrier to restart its commercial flight services using the same MAX jets. This Fort Worth, TX-based carrier will start plying the jets from Dec 29, 2020 on the Miami-New York route. Meanwhile, Latin American carrier Gol Linhas became the first airline company in the world to resume its Boeing 737 Max passenger flight services. Gol started commercially operate the jets in its domestic network from Dec 9, 2020 following a nod from the Brazilian regulatory authorities.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Southwest (LUV) Eyes a March Comeback for Boeing 737 MAX Jets
Southwest Airlines (LUV - Free Report) with the maximum exposure to Boeing 737 MAX planes among the U.S. carriers expects to resume commercial flight services using the jets in March 2021. Notably, last month, decks were cleared for the aircraft, which has remained grounded since March 2019, by the Federal Aviation Administration (FAA) to restart its commercial operations.
However, certain requirements have to be met before the planes can recommence services. Notably, Southwest Airlines is currently working with the FAA on various issues like installing FAA-approved flight control software updates and implementing the need for the FAA-required pilot training. Fulfilling all these conditions, Southwest Airlines anticipates to finally fly its Boeing 737 MAX planes approximately four months after receiving clearance from the FAA.
In fact, the Dallas-based carrier aims to increase the number of Boeing 737 MAX planes in its fleet beyond the current strength of 34. To this end, the airline inked a deal with The Boeing Company (BA - Free Report) to take delivery of 35 delayed MAX 8 planes by Dec 31, 2021. Of the 35 MAX 8 planes, 16 are leased.
However, Southwest Airlines does not wish to expand its total fleet size in 2021 beyond the 2019 level of 747 planes. The static size is due to the planned retirements of the 737-700 aircraft from its fleet.
Moreover, despite the anticipated deliveries, the company, currently carrying a Zacks Rank #3 (Hold), expects to incur an immaterial amount toward aircraft capital expenses in fourth-quarter 2020 as well as in 2021. This is because of “certain delivery credits provided in the Boeing Agreement, as well as progress payments made to date on undelivered aircraft.”
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
While Southwest Airlines does not expect to resume its commercial operations with the Boeing 737MAX jets before March, American Airlines (AAL - Free Report) will do so much earlier, achieving the privilege of becoming the first U.S. carrier to restart its commercial flight services using the same MAX jets. This Fort Worth, TX-based carrier will start plying the jets from Dec 29, 2020 on the Miami-New York route. Meanwhile, Latin American carrier Gol Linhas became the first airline company in the world to resume its Boeing 737 Max passenger flight services. Gol started commercially operate the jets in its domestic network from Dec 9, 2020 following a nod from the Brazilian regulatory authorities.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>