AMERICAN, SOUTHWEST MOVES SIGNAL INDUSTRY RESURGENCE

What’s happening

American Airlines expects to put most of its fleet back in service in the second quarter, following “recent strength in domestic and short-haul international bookings.” Meanwhile, Southwest Airlines ordered 100 Boeing 737 Max 7 jets and said it would purchase as many as 155 more, cementing a half-century relationship and ending a public flirtation with Airbus.

Falling infections and hospitalizations and rising vaccinations have spurred demand after a blow early this year when the U.S. required negative coronavirus tests for international travelers, American said in a regulatory filing Monday. The seven-day average of net bookings on March 26 was about 90% of the 2019 level and domestic flights are 80% full, the company said.

Related development

Southwest’s 100-plane order,

valued at about $10 billion before customary discounts, gives a boost to the slow-selling, 150-seat Max 7, the smallest plane available in the line. Southwest also switched 70 orders for the Max 8 to the 7, the airline said in a statement Monday. The 155 options are for either variant.

Southwest chose to continue its lengthy history of flying only the 737 after hinting for more than a year that it might switch to the Airbus A220. A shift would have dealt a heavy blow to Boeing as it attempts to rebuild confidence in the Max after two deadly crashes caused a nearly two-year global grounding.

TNS Southwest chose to continue its lengthy history of flying only the 737 after hinting it might switch to the Airbus A220.