Categories: Aviation

Southwest Profits Fall After Grounded 737 Max Planes Increase Costs

Southwest Airlines fourth-quarter profits fell more than expected as the airline pays a high price for the grounding of Boeing’s 737 Max Aircraft.

According to a report on CNBC.com, profit fell more than 21 percent to $514 million, as the carrier’s costs rose, and Southwest says it will continue feeling the pinch into the new year as Boeing says the planes will remain inoperable into the busy summer season.

Southwest CEO Gary Kelly said in a statement the corporate will “continue to incur monetary damages in 2020, and we can continue discussions with Boeing referring to additional compensation.”

Southwest, which owns the most 737 Max planes, has pulled the aircraft through early June but says that it expects to make further adjustments.

Last year, the carrier reached a confidential agreement with Boeing for damages over its losses from the grounding of the planes and it expects to reach a similar deal with Boeing for losses incurred this year.

Brad Smith

A late bloomer but an early learner, Brad likes to be honestly biased. Though fascinated by the far-flung corners of the galaxy, She doesn’t fancy the idea of humans moving to Mars.

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