American Airlines wants you to get on the plane earlier.
08.02.2025 - 16:03 / insider.com / Ed Bastian / Bob Jordan / Brian West / Kelly Ortberg
Production struggles at Boeing and Airbus have forced airlines around the world to cut routes and spend more to keep older planes flying, even as travel demand soars.
Airlines reeling from delays have looked to aircraft lessors to fill the gaps, but likely won't see much relief in 2025 as Boeing works to get its assembly lines back on track.
The embattled manufacturer delivered 348 planes in 2024, down from 528 the year prior. Its rival, Airbus, nearly doubled that at 766 aircraft deliveries.
"The first half is going to reflect our gradual, steady restart of the factory, and the second half is likely going to benefit from achieving higher production rates," Boeing's chief financial officer Brian West said in January of the year ahead. "2025, in some ways, could look like 2023, maybe a bit better if things go our way."
A federally mandated cap on production of 737 Max planes is hampering deliveries for waiting airlines.
Irish low-cost carrier Ryanair, for example, cut its traffic target for 2025, and Southwest Airlines said it expects up to 100 fewer Max jets than its agreed-upon 136.
American Airlines, United Airlines, and budget carrier Allegiant Air have similarly cut their 2025 delivery expectations and are couching their schedules and crew staffing.
This is a particular nuisance as airlines try to capitalize on booming travel demand. Lower seat capacity may also result in higher ticket prices for customers.
Two new 737 Max variants — the Max 7 and the Max 10 — are still waiting on certification. It's unclear when they may enter service.
After the 2024 door plug blowout, United removed the Max 10 from its 2025 plans, while Southwest cut the Max 7 from its 2024 capacity. Delta Air Lines CEO Ed Bastian said in March its on-order Max 10s could be delayed to 2027.
Overall, airlines appear optimistic about Boeing's turnaround.
United's CFO, Mike Leskinen, said in a January earnings call that the airline is bullish about the Max 10 as Boeing starts to "make some real progress in improving their business."
Southwest and Allegiant also appear higher on Boeing after both received more Max planes than expected in the fourth quarter.
"[Boeing] appear[s] to be on a good path, and we're feeling more optimistic," Southwest CEO Bob Jordan said. "Regardless, we think it's prudent to hedge our bets."
Boeing CEO Kelly Ortberg said the company wants to increase Max production to 42 a month by the end of 2025, which can only happen if Boeing meets FAA-mandated performance standards.
Boeing's popular widebody 787 Dreamliner has faced a slew of quality problems.
American cut three planned 787 routes to Europe this summer and reduced frequencies on two others, data from Cirium shows. The delays have already forced it to
American Airlines wants you to get on the plane earlier.
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