American Airlines Group Inc and Southwest Airlines Co warned on Thursday of an i...
) warned on Thursday of an increasing financial toll from the prolonged Boeing 737 MAX grounding this year even as strong bookings and higher fares helped drive quarterly revenue growth.
Lacking planes, Southwest said it is ceasing service from weak-performing Newark Liberty International airport, where it had up to 20 daily departures, to consolidate its New York City service at nearby LaGuardia and focus growth on Hawaii. The low-cost carrier launched Hawaii service this year. American, which is also dealing with about a dozen daily cancellations it attributes to work slowdowns by its two main mechanics unions over contract disputes, said it is extending the lifespan of some of its other 737 models as well as some 757s and A320s.
Southwest extended MAX-related cancellations until Jan. 5, 2020, saying it does not expect regulatory approval until the fourth quarter, which will be followed by one to two months to train pilots and prepare the jets for fresh commercial service. Shares in American were down about 3 percent while Southwest recovered opening declines to trade flat by late morning.Without the MAX, Southwest said its flying capacity will now fall by as much as 2% this year, a reversal from its earlier forecast of 5% growth. American’s capacity will still grow in 2019, the airline said, but at a slower rate than originally planned.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Southwest Cuts Newark as It Looks to Offset Effects of 737 MAX GroundingSouthwest Airlines said it will cease operations at Newark airport this fall due to the impact of the grounding of the Boeing 737 MAX 8 aircraft. The carrier’s New York presence will be consolidated at LaGuardia.
Read more »
American Airlines profit tops expectations but takes hit from Boeing 737 Max groundingAmerican's profit topped expectations but the company took a hit from the prolonged 737 Max grounding.
Read more »
Southwest ekes out profit as bookings offset MAX groundings; Newark operations ceasedSouthwest Airlines Co eked out a small profit in the second quarter on Thursday ...
Read more »
Southwest ceasing operations at Newark airport because of 737 Max delaysSouthwest Airlines is ceasing operations at Newark Liberty International Airport because of the continued grounding of the Boeing 737 Max.
Read more »
American, Southwest Report Big Second-Quarter Profits Despite 737 MAX Groundings, Labor FightsBoth American’s and Southwest’s profits were boosted, in a somewhat perverse way, by the grounding of the Boeing 737 MAX. Southwest also dropped the 737 MAX from its schedule until January, becoming the first U.S. airline to do so, and said it would halt service from Newark Airport.
Read more »