Boeing’s halt on 737 Max output could add more stress on airlines

Airlines could come under further financial pressure should Boeing go ahead with a production halt of the grounded 737 Max, with any prolonged delays in jet deliveries raising their operating costs. Carriers are paying higher rates to lease planes to make up for the loss in capacity, while delays to their expansion plans are holding back revenue growth, said Shukor Yusof, founder of aviation consultant Endau Analytics. Asian carriers would be affected the most as they have the biggest number of 737 Maxes on order, accounting for at least 26% of the total unfilled deliveries at the end of November. “The financial cost for the airlines is huge,” Shukor said. “Growth will be stunted and profitability will also be severely eroded.” <br/>