Southwest Airlines Co. on Monday said it is buying 100 new Boeing Co. 737 MAX jets, a boost for the plane maker, which lost hundreds of orders during a prolonged grounding of the troubled jet and reduced demand for travel during the coronavirus pandemic.
The order for the MAX 7 jets, the smallest MAX variant, means Boeing will retain its lock on one of its most important airline customers. Southwest’s fleet is made up entirely of 737 jets, but the carrier had been re-evaluating that strategy.
For Boeing, the deal—the largest MAX order since U.S. regulators lifted a flight ban last year—marks a win after a series of setbacks in recent years, including the nearly two-year grounding that followed two 737 MAX crashes that claimed 346 lives.
Boeing shares rose 2.3% to $250.44 Monday morning.
Southwest executives have long held that flying just one type of plane helps simplify operations and keeps a lid on the costs of maintenance and training. The airline is the biggest buyer of Boeing’s 737 MAX jets, but the MAX debacle threw that into question.
