Alaska Airways buys over 100 Boeing 737-10 jets in service’s greatest order

Alaska Airways is shopping for greater than 100 Boeing jets, a purchase order that the service’s fleet chief mentioned will guarantee it has locked in sought-after order slots by the center of the following decade to develop.

The order, Alaska’s largest ever, introduced Wednesday, contains 105 yet-to-be-certified Boeing 737 Max 10 jets. Alaska can also be shopping for 5 787-10 Dreamliners, utilizing its earlier buy choices for these long-haul jets because it charts worldwide growth.

Shane Jones, who oversees Alaska Airways’ fleet, income merchandise and actual property, advised CNBC that the airline expects FAA certification of the Max 10 this 12 months, with deliveries starting in 2027.

Alaska, which merged with Hawaiian Airways in 2024, had beforehand ordered greater than 40 Max 10 planes. The brand new order contains choices for 35 extra. Fifty-three of the planes in Wednesday’s order are new, and 52 are from choices the airline is exercising.

Boeing has greater than 6,000 plane on backorder, however Alaska’s buy plans are a vote of confidence in airplane maker, whose 737 manufacturing facility 10 miles away from the service’s headquarters gave Alaska a 737 Max 9 two years in the past with out key bolts put in in a door plug. That panel blew out of the aircraft on Jan. 5, 2024, because it climbed out of Portland, Oregon, beautiful vacationers, although there have been no severe bodily accidents.

The accident set Boeing again in manufacturing because it waded by one other security disaster throughout what was presupposed to be its turnaround 12 months within the wake of two lethal Max crashes in 2018 and 2019.

The 737 Max 10 has a shorter vary than another fashions however it could actually match extra passengers than smaller variants, a lift to carriers’ unit prices on high-demand flights like cross-country routes.

Below Boeing CEO Kelly Ortberg, who changed insider Dave Calhoun months after the accident, the aircraft maker has improved its manufacturing charge and high quality, airline executives have mentioned. It plans to ramp up manufacturing this 12 months. The FAA should approve Boeing’s Max manufacturing will increase, a requirement following the door plug accident.

Alaska’s Jones advised CNBC that the service’s belief in Boeing is “part of this order.” He additionally mentioned it confirmed “our confidence within the Max 10 certification and our confidence in Boeing and their turnaround and their capability to supply high quality plane on time.”

Jones mentioned about half of the brand new plane orders are for alternative, with the remaining for development. He declined to reveal how a lot the airline paid for the plane. Producers usually share listing costs, although large clients typically obtain reductions for giant orders.