Southwest, American Airlines CEOs have a message for Boeing

Bob Jordan, CEO of Southwest Airlines, said Boeing deliveries have not been going as expected for years.
He added that Boeing’s significant delivery delays in 2024 could extend into 2025.
Facing several challenges, Boeing last week reported a third-quarter net loss of $6.1 billion.

The heads of two major airlines have a message for it Boeing: Do better.

This past week, Southwest CEO Bob Jordan and American Airlines CEO Robert Isom discussed the challenges their airlines have faced with Boeing.

“Boeing has been a great partner of Southwest Airlines for 53 years, but we need Boeing to be strong. We need Boeing to be better,” Jordan said in an interview with Yahoo Finance on Monday.

Jordan said Southwest originally expected more than 80 aircraft deliveries from Boeing in 2024, but will now receive only 20. He added that while 2024 has been particularly tough, it has been years since Boeing deliveries have gone as expected for the airline.

“As the strike continues, it appears that 2025 could also have consequences,” he said.

“The heart of an airline is its flight schedule, and the flight schedule depends on getting your plane on time,” he added.

Jordan also said Southwest, which uses exclusively Boeing planes, is “constantly assessing” the market but is not actively exploring partnerships with other aircraft manufacturers.

Southwest’s fleet consists of 228 Boeing 737 Max 8s, 381 Boeing 737-800s and 207 Boeing 737-700s, according to the airline’s website FlightRadar24.

Jordan’s comments echo comments Isom made last week.

“For Boeing, I’m just looking forward to the day when they’re not just a distraction,” Isom said Thursday. interview on CNBC’s “Squawk Box.”

“We have been struggling with them for the last five years,” Isom added.

Isom told CNBC that his company needs Boeing “to be strong” – and that he has conveyed that message to the plane maker’s new CEO, Kelly Ortberg.

“Ultimately, though, we need them to deliver quality aircraft on time, and I will welcome that call when Boeing says, ‘We’re going to do that,’” he added.

When contacted for comment, a Boeing spokesperson said it had previously acknowledged delivery delays and that future deliveries are dependent on the strike being resolved.

Southwest reported earlier this year that it expected to receive about 20 Boeing 737 Max 8s. The announcement followed a production delay at Boeing after a… door plug blew off a Boeing jet during an Alaska Airlines flight in January.

Add to the challenges at BoeingEmployees have been on strike since mid-September. Analysts estimate the work stoppage is costing the company $50 million a day. The company reported a Third-quarter net loss of $6.1 billion last week.

The crisis has caused Boeing to lose money. The manufacturer announced on Monday that it is offering for sale 90 million shares of common stock and approximately $5 billion in depository receipts. Based on Friday’s closing price of $155.01, the new offering is worth about $18.95 billion.

The stock is down 40% year to date.

This month Boeing filed an SEC filingThe company says it can sell $25 billion in securities, including bonds, new shares and stock options.

That’s next to the Credit agreement worth $10 billion it has entered into with Bank of America, Citibank, Goldman Sachs and JPMorgan Chase, described in a registration application on October 14.

Southwest did not respond to a request for comment from Business Insider.

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