Grounded Boeing jet holds back profits, growth at airlines
The three big U.S. airlines that own Boeing 737 Max jets don’t expect the grounded plane back in their fleets until after the the peak summer travel season, and that promises to lead to thousands more canceled flights and higher costs well into another year.
On Thursday, American Airlines executives said they canceled 10,000 flights in the fourth quarter because of the idled planes.
Southwest Airlines said the grounding cut its 2019 operating income by $828 million. The airline expected to own about 75 Max jets by now — 10% of its fleet — and the shortage is creating “a crisis-like challenge,” said CEO Gary Kelly.
The airlines planned to add more flights in 2020 to take advantage of strong demand for travel. Now Southwest figures to shrink by up to 2.5% in the first quarter, compared to early 2019. Beyond that, the airline isn’t sure because it all depends on when the Max returns.
Read full story: apnews.com
Posted: 24 Jan 2020 12:38:43