Southwest takes US$210m Max hit in Q3, expects another knock in Q4
Southwest Airlines lost US$210m in revenue during Q4 as a result of the Boeing 737 Max grounding, and expects an even greater revenue hit in Q4 due to aircraft and schedule reshuffling for the busy holiday travel season. Southwest estimates the grounding, which took effect in March, cost it US$435m in operating income through September, the company said Thursday. Southwest, which operates an all-Boeing fleet, has cancelled Max flights through Feb 8, and says it expects delivery of seven new aircraft in Q4 pending FAA re-certification of the type, and the remaining 34 on order moving into 2020. “We assume an un-grounding date around mid-December,” says CE Gary C Kelly. The airline say it will take several months to get the entire fleet back and running once the FAA green-lights the aircraft’s return to service. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-10-25/unaligned/southwest-takes-us-210m-max-hit-in-q3-expects-another-knock-in-q4
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Southwest takes US$210m Max hit in Q3, expects another knock in Q4
Southwest Airlines lost US$210m in revenue during Q4 as a result of the Boeing 737 Max grounding, and expects an even greater revenue hit in Q4 due to aircraft and schedule reshuffling for the busy holiday travel season. Southwest estimates the grounding, which took effect in March, cost it US$435m in operating income through September, the company said Thursday. Southwest, which operates an all-Boeing fleet, has cancelled Max flights through Feb 8, and says it expects delivery of seven new aircraft in Q4 pending FAA re-certification of the type, and the remaining 34 on order moving into 2020. “We assume an un-grounding date around mid-December,” says CE Gary C Kelly. The airline say it will take several months to get the entire fleet back and running once the FAA green-lights the aircraft’s return to service. <br/>
