Boeing’s 737 crisis reaches new heights as airlines are forced to cut flights and forecasts

Your plane (delivery) is delayed… indefinitely. Boeing’s 737 woes are causing delivery setbacks just as most airlines are trying to ramp up capacity. Refresher: in January the FAA began an extensive investigation after a sealed door on a 737 Max 9 yeeted off mid-flight. Since then, the aviation regulator has paused certification for Boeing’s newest 737 (the Max 10). Delta expects deliveries could be delayed till 2027. Already…

• Rough landing: Shares of Southwest (which only flies 737s) sank 15% Tuesday after the carrier slashed its flight schedules and capacity for the year — and said it expects a net loss for the quarter. It’s reevaluating its annual guidance too.

• Frozen delivery: Alaska Airlines said the production stoppage puts its capacity expectations in “flux.” United, which is halting pilot hiring, asked Boeing to stop building the Max 10s it ordered and deliver Max 9s instead (it’s also subbing some for Airbus jets).

Tarnation on the tarmac… The FAA said Boeing needs “enormous” scrutiny after its Alaska doorbacle, and it reportedly found dozens of issues during a recent audit. Last month the FAA released a damning report that said a safety “disconnect” exists between Boeing execs and staff, and added that the company had 90 days to address its issues before it can return to business as usual. Boeing said it planned to work with employees who violated manufacturing procedures to make sure they understood instructions. Meanwhile, the Justice Department just launched a criminal investigation into the Alaska blowout.