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Southwest converted options it held over the MAX 8 jets into
firm orders, with 10 to be delivered each year from 2019 to
2022, the airline said in a statement on Thursday that announced
its first-quarter earnings.
"This is first and foremost an extension of our fleet
modernization strategy," Southwest Chief Executive Officer Gary
Kelly told analysts on a post-earnings conference call,
according to a transcript.
"We have a very strong business case to replace older 737-700
aircraft given the superior operating economics of the MAX 8."
Southwest is the world's largest operator of 737 jets, with more
than 700 of the airplanes. The airline has now ordered nearly
300 Boeing MAX jets, the most of any customer, a Boeing
spokesman said. The MAX series is more fuel efficient than
previous models.
Southwest warned on Thursday that the consequences of a mid-air
engine explosion on a 737-700 last week will weigh on
second-quarter bookings, as investigators probe the events that
led to the first passenger death in the airline's history.
The carrier posted a first-quarter profit of $438 million,
excluding special items, up from $372 million a year earlier.
(Reporting by Jamie Freed in Singapore and Tim Hepher in Paris;
Editing by Neil Fullick and Muralikumar Anantharaman)
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