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The Boeing logo can be seen at their Chicago headquarters in this photo from April 24, 2013. REUTERS/Jim Young/File photo
Southwest Airlines (LUV.N) said Tuesday it had ordered 34 new Boeing Co (BA.N) 737 MAX 7 aircraft to receive in 2022 as the US carrier prepares for a vaccine-driven recovery in travel demand. .
The move lifts the carrier’s firm orders for the MAX 7 aircraft to a total of 234 aircraft. (https://bit.ly/3pvTNgF)
The massive rollout of COVID-19 vaccines and the easing of travel restrictions have boosted hopes for a recovery in bookings for US airlines after suffering heavy losses in 2020.
Southwest also sharpened its average cash burn forecast for the second quarter on Tuesday to between $1 million and $2 million per day, from its previous range of $1 million to $3 million per day.
Cash burn, a measure US airlines began providing in 2020 to gauge liquidity in the face of the pandemic, was about $2 million per day in May.
The company said it continues to expect revenue in June to improve from a month earlier, thanks to higher passenger traffic and higher tourist fares.
Passenger demand and booking trends remain primarily focused on leisure, it said in a statement.
(Story corrects to remove reference to 2022, adds total in paragraph 2)
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