On Tuesday, Southwest Airlines announced that it is going to add more 34 Boeing’s smallest 737 Max model in its order, mentioning an improvement in travel demand.
The Dallas-based airline said in a statement that it will exercise options to increase its firm orders of 737 Max 7s by 34 planes. With this improvement, the airlines is bringing its total purchase for that plane to 234.
The all-Boeing 737 airline also has orders for approx. 149 Max 8 planes that are expected to be delivered by 2031, as the company suspending older 737s.
Southwest Airlines expects its 2022 funds expenditures to rise $1.5 billion, that is up from a previous evaluation of $700 million.
The other two airlines, United Airlines and Alaska Airlines have also increased their Boeing Max orders in previous months. These orders will help in boosting the demand that went down with two fatal crashes in 2019. The U.S. regulators had lifted the grounding in November.
Southwest said, “It expects demand and revenue to continue to rise into July as vacationers return to air travel, pushing leisure fares up to 2019 levels.”
As the world is now recovering from pandemic, the travel industry also seems to recover. The improvement in process but the industry’s business remains far below from 2019 levels.