US carrier Allegiant Air is no longer expecting to receive any additional Boeing aircraft this year. The leisure carrier received the first of 50 Boeing aircraft it has on order earlier this year as it transitions from an all-Airbus to a mixed fleet.
One and done
The airline received its first Boeing 737 in September. The aircraft (registered N811NV) is the first high-density Boeing 737 MAX 8-200 to go to a US airline and is configured to seat more passengers than a regular MAX 8.
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Allegiant Air’s first Boeing 737 MAX 8-200 entered service on October 20.
Allegiant was expecting to receive up to a dozen of the aircraft this year but has now confirmed it will not receive any additional Boeing planes before the end of the year. Speaking at an investors call this week, Greg Anderson, Allegiant’s Chief Executive Officer, confirmed that the ongoing strike at Boeing has resulted in additional delays:
”The Boeing strike has obviously created some additional uncertainty to our latest delivery forecast, and we don’t see this being firmed up until the strike has ended.”
Photo: Allegiant
According to executives, the carrier has built additional fleet flexibility into its schedule to help address these challenges and has taken appropriate measures to better protect its schedule.
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Despite being an Airbus customer with a fleet of pre-owned airframes, the carrier surprisingly opted for the 737 MAX instead of the neo.
The company’s chief commercial officer, Drew Wells, added additional context to the ongoing delays by confirming that the carrier has been working together with Boeing on an updated delivery schedule since early in the second quarter but indicated that the process had taken longer than expected in light of the ongoing machinists’ strike.
“Boeing and CF have been very supportive, and we expect to disclose an amendment to our purchase agreement during the fourth quarter.”
The airline now plans to end the year with just one MAX aircraft in service alongside 121 A320 family airplanes. According to Wells, Allegiant is currently planning to take delivery of 11 MAX aircraft and remove 10 A320 family aircraft from operation in 2025, which would result in a total fleet count up by just one unit by year-end.
The bulk of the airline’s A320 retirements in 2025 are expected to take place late in the year, leaving the aircraft available for peak summer travel.
How is the Boeing 737 MAX performing so far?
The airline’s sole operating Boeing aircraft took its first flight on September 9th and arrived at its new operating base in Orlando Sanford International Airport (SFB) the same month. Although initially scheduled to begin flying customers today (November 1st), it entered service on October 20th, with Anderson noting:
“I am happy to report it entered revenue service in mid-October, a very quick turnaround that reflects our team’s preparedness and dedication.”
The aircraft is crucial to the airline’s plan to increase profits, and Anderson confirmed that early results have reaffirmed the carrier’s excitement about its margin potential.
Photo: Boeing
The aircraft offers significant operating efficiencies over the existing Airbus fleet, including an up to 26% improvement in fuel burn on an available seat mile per gallon basis and an additional ten seats per flight. To accommodate the extra passengers, Boeing had to add two additional exits between the wings and the plane’s rear.
Overall, Allegiant estimates the MAX’s earnings potential to be roughly $2 million more annually compared to its A320 fleet.
