Boeing pulls 2019 guidance, pauses share buybacks due to 737 Max uncertainty

Boeing announced Wednesday it will pause share buybacks and is withdrawing its full year 2019 financial forecast while it works through issues surrounding its 737 Max aircraft, whose software is suspected in two deadly crashes. Boeing said the previous guidance “does not reflect 737 MAX impacts,” adding that “new guidance will be issued at a future date” because of “the uncertainty of timing and conditions” for when the 737 Max planes will return to flight. The company’s presentation to sharehol


Boeing announced Wednesday it will pause share buybacks and is withdrawing its full year 2019 financial forecast while it works through issues surrounding its 737 Max aircraft, whose software is suspected in two deadly crashes. Boeing said the previous guidance “does not reflect 737 MAX impacts,” adding that “new guidance will be issued at a future date” because of “the uncertainty of timing and conditions” for when the 737 Max planes will return to flight. The company’s presentation to sharehol
Boeing pulls 2019 guidance, pauses share buybacks due to 737 Max uncertainty Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: michael sheetz, source
Keywords: news, cnbc, companies, share, 737, boeing, pulls, guidance, max, fell, 2019, works, billion, aircraft, pauses, buybacks, trading, uncertainty


Boeing pulls 2019 guidance, pauses share buybacks due to 737 Max uncertainty

Boeing announced Wednesday it will pause share buybacks and is withdrawing its full year 2019 financial forecast while it works through issues surrounding its 737 Max aircraft, whose software is suspected in two deadly crashes.

Boeing said the previous guidance “does not reflect 737 MAX impacts,” adding that “new guidance will be issued at a future date” because of “the uncertainty of timing and conditions” for when the 737 Max planes will return to flight. The company’s presentation to shareholders noted the commercial airplane business had $1 billion in increased costs due to the 737 production line.

The company also delivered first-quarter earnings that were in line with Wall Street expectations while revenue was lighter than expected. Boeing’s cash flow fell nearly 10%, to $2.8 billion this quarter from $3.1 billion the same period last year, specifically citing lower 737 aircraft deliveries.

Shares of Boeing initially fell in premarket trading after the release but bounced back, trading up more than 1% from Tuesday’s close of $374.02 a share.


Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: michael sheetz, source
Keywords: news, cnbc, companies, share, 737, boeing, pulls, guidance, max, fell, 2019, works, billion, aircraft, pauses, buybacks, trading, uncertainty


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FAA panel says Boeing 737 Max software is ‘operationally suitable’ in new report

The Federal Aviation Administration on Tuesday released its initial review of Boeing’s update to its 737 Max anti-stall software suspected of contributing to two fatal plane crashes, calling it “operationally suitable.” The draft report from the FAA’s Flight Standardization Board recommends that pilots take additional computer-based training for the MCAS automated flight system. Boeing said it’s completed 96 flights totaling over 159 hours of air time with its software fix for the Max jet. The c


The Federal Aviation Administration on Tuesday released its initial review of Boeing’s update to its 737 Max anti-stall software suspected of contributing to two fatal plane crashes, calling it “operationally suitable.” The draft report from the FAA’s Flight Standardization Board recommends that pilots take additional computer-based training for the MCAS automated flight system. Boeing said it’s completed 96 flights totaling over 159 hours of air time with its software fix for the Max jet. The c
FAA panel says Boeing 737 Max software is ‘operationally suitable’ in new report Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-16  Authors: emma newburger, jason redmond, afp, getty images
Keywords: news, cnbc, companies, boeing, fix, max, works, wells, operationally, faa, 737, systemthe, panel, boeings, suitable, flight, company, board, report, software


FAA panel says Boeing 737 Max software is 'operationally suitable' in new report

The Federal Aviation Administration on Tuesday released its initial review of Boeing’s update to its 737 Max anti-stall software suspected of contributing to two fatal plane crashes, calling it “operationally suitable.”

The draft report from the FAA’s Flight Standardization Board recommends that pilots take additional computer-based training for the MCAS automated flight system.

The company’s shares jumped by about 2% on the news.

Boeing said it’s completed 96 flights totaling over 159 hours of air time with its software fix for the Max jet. The company is also updating airlines by bringing representatives into flight simulators and showing them the modified flight control system.

The company has stopped deliveries and has cut Max production by 20% as it works on a fix. The jets have been grounded since mid-March. Wells Fargo said Tuesday that Boeing’s troubles with the Max will reduce second-quarter GDP growth by 0.2%.

Separately, Institutional Shareholder Services on Tuesday recommended that shareholders vote in favor of a proposal that would require Boeing to have an independent chairman of the board. That title is currently held by CEO Dennis Muilenburg.


Company: cnbc, Activity: cnbc, Date: 2019-04-16  Authors: emma newburger, jason redmond, afp, getty images
Keywords: news, cnbc, companies, boeing, fix, max, works, wells, operationally, faa, 737, systemthe, panel, boeings, suitable, flight, company, board, report, software


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United Airlines cancels all 737 Max flights through early July

United Airlines has extended cancellations of the Boeing 737 Max through early July, following similar moves by other major airlines coping with the jet’s prolonged grounding. American Airlines said Sunday it will cancel all Max flights through Aug. 19. On Friday, Southwest Airlines removed the Max jet from its schedule through Aug. 5. United had previously cancelled Max flights through June 5. The widespread cancellations come after the Max’s anti-stall software was implicated in two fatal cras


United Airlines has extended cancellations of the Boeing 737 Max through early July, following similar moves by other major airlines coping with the jet’s prolonged grounding. American Airlines said Sunday it will cancel all Max flights through Aug. 19. On Friday, Southwest Airlines removed the Max jet from its schedule through Aug. 5. United had previously cancelled Max flights through June 5. The widespread cancellations come after the Max’s anti-stall software was implicated in two fatal cras
United Airlines cancels all 737 Max flights through early July Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-15  Authors: emma newburger, katherine frey, the washington post, getty images
Keywords: news, cnbc, companies, widespread, united, cancellations, flights, aug, southwest, early, similar, software, airlines, 737, max, cancels


United Airlines cancels all 737 Max flights through early July

United Airlines has extended cancellations of the Boeing 737 Max through early July, following similar moves by other major airlines coping with the jet’s prolonged grounding.

American Airlines said Sunday it will cancel all Max flights through Aug. 19. On Friday, Southwest Airlines removed the Max jet from its schedule through Aug. 5. United had previously cancelled Max flights through June 5.

The widespread cancellations come after the Max’s anti-stall software was implicated in two fatal crashes in Ethiopia and Indonesia since October.


Company: cnbc, Activity: cnbc, Date: 2019-04-15  Authors: emma newburger, katherine frey, the washington post, getty images
Keywords: news, cnbc, companies, widespread, united, cancellations, flights, aug, southwest, early, similar, software, airlines, 737, max, cancels


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American Airlines cancels all 737 Max flights through August 19

American Airlines is extending cancellations for the Boeing 737 Max aircraft through August 19, a key summer travel period, as the jets remain grounded. The cancellations amount to about 115 flights per day, roughly 1.5% of American’s total flying per day in the summer, the airline said. Boeing has slowed production and stopped deliveries as it works on a software fix. United has canceled Max flights through June 5. As major airlines continue to extend cancellations, Boeing said Thursday that it


American Airlines is extending cancellations for the Boeing 737 Max aircraft through August 19, a key summer travel period, as the jets remain grounded. The cancellations amount to about 115 flights per day, roughly 1.5% of American’s total flying per day in the summer, the airline said. Boeing has slowed production and stopped deliveries as it works on a software fix. United has canceled Max flights through June 5. As major airlines continue to extend cancellations, Boeing said Thursday that it
American Airlines cancels all 737 Max flights through August 19 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-14  Authors: emma newburger, shannon stapleton
Keywords: news, cnbc, companies, cancels, max, american, remain, boeing, 19, software, cancellations, travel, fix, summer, flights, 737, airlines


American Airlines cancels all 737 Max flights through August 19

American Airlines is extending cancellations for the Boeing 737 Max aircraft through August 19, a key summer travel period, as the jets remain grounded.

The cancellations amount to about 115 flights per day, roughly 1.5% of American’s total flying per day in the summer, the airline said. They come after the Max’s anti-stall software was implicated in an Ethiopian crash in March that killed 157 people.

It’s unclear when the Max, which has been grounded since mid-March, will return. Boeing has slowed production and stopped deliveries as it works on a software fix.

On Friday, Southwest Airlines removed the Max jet from its schedule through Aug. 5. United has canceled Max flights through June 5.

“We remain confident that the impending software updates, along with the new training elements Boeing is developing for the MAX, will lead to recertification of the aircraft soon,” American CEO Doug Parker and President Robert Isom wrote in a letter to employees Sunday.

Parker also said canceling the flights now will help the airline plan for its busiest travel season of the year.

As major airlines continue to extend cancellations, Boeing said Thursday that it’s completed 96 flights with the new Max software fix. The planemaker will likely submit the fix to Federal Aviation Administration regulators within the next couple weeks.


Company: cnbc, Activity: cnbc, Date: 2019-04-14  Authors: emma newburger, shannon stapleton
Keywords: news, cnbc, companies, cancels, max, american, remain, boeing, 19, software, cancellations, travel, fix, summer, flights, 737, airlines


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Southwest removes Boeing 737 Max from flight schedule through early August as grounding persists

There’s no timetable for the return of the Max, which has been grounded since mid-March. Boeing has slowed production and stopped deliveries as it works on a software fix. Other major airlines like American and United have canceled thousands of flights because of prolonged groundings. American, which operates 24 Max planes and has 76 more on order, canceled roughly 1,200 flights in March. United has 14 of the Boeing 737 Max 9s in its fleet, and like American, has canceled 737 Max flights through


There’s no timetable for the return of the Max, which has been grounded since mid-March. Boeing has slowed production and stopped deliveries as it works on a software fix. Other major airlines like American and United have canceled thousands of flights because of prolonged groundings. American, which operates 24 Max planes and has 76 more on order, canceled roughly 1,200 flights in March. United has 14 of the Boeing 737 Max 9s in its fleet, and like American, has canceled 737 Max flights through
Southwest removes Boeing 737 Max from flight schedule through early August as grounding persists Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-12  Authors: emma newburger, joe raedle, getty images
Keywords: news, cnbc, companies, grounding, canceled, schedule, early, boeing, american, max, flight, tom, works, persists, southwest, flights, travel, united, removes, 737


Southwest removes Boeing 737 Max from flight schedule through early August as grounding persists

There’s no timetable for the return of the Max, which has been grounded since mid-March. Boeing has slowed production and stopped deliveries as it works on a software fix.

Other major airlines like American and United have canceled thousands of flights because of prolonged groundings. American, which operates 24 Max planes and has 76 more on order, canceled roughly 1,200 flights in March. United has 14 of the Boeing 737 Max 9s in its fleet, and like American, has canceled 737 Max flights through June 5.

“The limited number of customers, who have already booked their travel and will be affected by this amended schedule, are being proactively notified so that we can reaccommodate their flight plans well in advance of their travel date,” Southwest President Tom Nealon said in a statement.


Company: cnbc, Activity: cnbc, Date: 2019-04-12  Authors: emma newburger, joe raedle, getty images
Keywords: news, cnbc, companies, grounding, canceled, schedule, early, boeing, american, max, flight, tom, works, persists, southwest, flights, travel, united, removes, 737


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Boeing CEO says it’s completed 96 test flights with 737 Max software fix

The test flights are one prong of a broad effort by Boeing to get the Max back in the air. Boeing says representatives from two-thirds of the 50 airlines that have the Max in their fleets have tested the new software in a simulator. The company said it will cut Max production by 20% as it works on a software fix to get the jets running again. Investigators suspect that faulty data feeding into the aircraft’s MCAS flight system played a major role in the Indonesia and Ethiopia accidents. Investig


The test flights are one prong of a broad effort by Boeing to get the Max back in the air. Boeing says representatives from two-thirds of the 50 airlines that have the Max in their fleets have tested the new software in a simulator. The company said it will cut Max production by 20% as it works on a software fix to get the jets running again. Investigators suspect that faulty data feeding into the aircraft’s MCAS flight system played a major role in the Indonesia and Ethiopia accidents. Investig
Boeing CEO says it’s completed 96 test flights with 737 Max software fix Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: phil lebeau, emma newburger, stephen brashear, getty images
Keywords: news, cnbc, companies, test, completed, system, flights, ceo, 737, software, jets, 96, faa, fix, boeing, max, weeks, flight, grounded


Boeing CEO says it's completed 96 test flights with 737 Max software fix

The test flights are one prong of a broad effort by Boeing to get the Max back in the air. The company is also updating airlines by bringing representatives into flight simulators and showing them how the modified flight control system will feel in the cockpit. Boeing says representatives from two-thirds of the 50 airlines that have the Max in their fleets have tested the new software in a simulator.

“We want everyone to be confident in it and the additional training and educational resources we’re developing and deploying,” Muilenberg said, adding that the last few weeks have been the most “heartwrenching” of his career.

The company will likely submit its plan to fix the Max, which has been grounded since mid-March, to the Federal Aviation Administration and other regulators within the next two weeks, according to people familiar with the matter. Getting those regulators to approve the plan will likely take several more weeks.

“I expect that the airplane is still several weeks away from getting the final seal of approval to be flown again, not so much that the software fix is a problem, but just from an optics standpoint,” said Jeff Guzzetti, former director of the FAA’s accident investigation civision. Guzzetti believes the FAA is stinging from criticism its relationship with Boeing was “too cozy” because the FAA designated Boeing engineers to self-certify parts of the 737 Max before the plane was given final approval in 2017.

Boeing has scrambled to restore faith in its 737 Max after the jet’s anti-stall software was implicated in two crashes in the last five months that killed 346 people and grounded the planes worldwide. The company said it will cut Max production by 20% as it works on a software fix to get the jets running again. They’ve been grounded since mid-March.

Investigators suspect that faulty data feeding into the aircraft’s MCAS flight system played a major role in the Indonesia and Ethiopia accidents. Investigators and lawmakers have scrutinized Boeing’s software system malfunction, from the original design to the training and safety certifications.

When designing the newest Max jets, Boeing allegedly increased the power of the automated system that pushes the plane nose down, making it hard for pilots to regain control of the doomed jets. Changes to the anti-stall system were not fully reviewed by the FAA.

Boeing said Tuesday that deliveries and new orders for all of its 737 jets fell in the first quarter, and earlier in the week, Wall Street analysts downgradedBoeing stock. The company’s shares have have fallen nearly 9 percent in the past month.

WATCH: What the future of FAA oversight may look like


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: phil lebeau, emma newburger, stephen brashear, getty images
Keywords: news, cnbc, companies, test, completed, system, flights, ceo, 737, software, jets, 96, faa, fix, boeing, max, weeks, flight, grounded


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Boeing first-quarter deliveries and orders sink after 737 Max groundings

Boeing announced Tuesday that deliveries and new orders for all of its 737 jets fell in the first quarter. Boeing announced Friday that it’s cutting production by 20 percent as it tries to find a software fix to get the planes flying again. Deliveries of its 737s tumbled to 89 during the first three months of the year, a dip from 132 during the same period last year. Total orders for 737s, the majority of which were for the newer Max model, fell to 95 in the first quarter, a drop from 180 a year


Boeing announced Tuesday that deliveries and new orders for all of its 737 jets fell in the first quarter. Boeing announced Friday that it’s cutting production by 20 percent as it tries to find a software fix to get the planes flying again. Deliveries of its 737s tumbled to 89 during the first three months of the year, a dip from 132 during the same period last year. Total orders for 737s, the majority of which were for the newer Max model, fell to 95 in the first quarter, a drop from 180 a year
Boeing first-quarter deliveries and orders sink after 737 Max groundings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-09  Authors: emma newburger, lindsey wasson
Keywords: news, cnbc, companies, announced, 737, boeing, model, max, groundings, orders, firstquarter, deliveries, sink, tumbled, fell, 737s


Boeing first-quarter deliveries and orders sink after 737 Max groundings

Boeing announced Tuesday that deliveries and new orders for all of its 737 jets fell in the first quarter.

The plane maker has halted deliveries of the 737 Max, the latest model of the popular narrow-body jet, after faulty data feeding into the aircraft’s automated flight system was implicated in two fatal crashes that killed all 346 people aboard the flights. Boeing announced Friday that it’s cutting production by 20 percent as it tries to find a software fix to get the planes flying again. They’ve been grounded since the second crash in mid-March.

Deliveries of its 737s tumbled to 89 during the first three months of the year, a dip from 132 during the same period last year. Total orders for 737s, the majority of which were for the newer Max model, fell to 95 in the first quarter, a drop from 180 a year earlier. There were no new 737 Max orders in March.


Company: cnbc, Activity: cnbc, Date: 2019-04-09  Authors: emma newburger, lindsey wasson
Keywords: news, cnbc, companies, announced, 737, boeing, model, max, groundings, orders, firstquarter, deliveries, sink, tumbled, fell, 737s


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Dow starts week with 80-point decline led by Boeing

Stocks fell on Monday as Wall Street digested strong gains from the previous week and looked ahead to the start of the corporate earnings season. Shares of Boeing and General Electric led the decline. Boeing dropped more than 4% after Bank of America Merrill Lynch cut its rating on the aerospace giant to neutral from buy. The bank said it expects production of the 737 Max jet to be delayed by six to nine months. This follows a deadly plane crash from last month that involved a 737 Max plane.


Stocks fell on Monday as Wall Street digested strong gains from the previous week and looked ahead to the start of the corporate earnings season. Shares of Boeing and General Electric led the decline. Boeing dropped more than 4% after Bank of America Merrill Lynch cut its rating on the aerospace giant to neutral from buy. The bank said it expects production of the 737 Max jet to be delayed by six to nine months. This follows a deadly plane crash from last month that involved a 737 Max plane.
Dow starts week with 80-point decline led by Boeing Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-08  Authors: fred imbert, spencer platt, getty images
Keywords: news, cnbc, companies, boeing, max, bank, 737, decline, dow, fell, winning, newton, 80point, industrial, starts, led, week


Dow starts week with 80-point decline led by Boeing

Stocks fell on Monday as Wall Street digested strong gains from the previous week and looked ahead to the start of the corporate earnings season.

The Dow Jones Industrial Average declined by 84 points. The S&P 500 eked out a 0.1% gain at 2,895.75, in danger of snapping a seven-day winning streak, as the industrial sector dipped 0.4%. The Nasdaq Composite ended Monday 0.2% higher.

“Equity trends remain steadfastly bullish but are now getting stretched, and have arrived at near-term areas where resistance could set in,” said Mark Newton, managing member at Newton Advisors. “Momentum is nearing overbought territory yet again after one of the best quarters in over 20 years time, while the groups that have led this rally, namely technology, consumer discretionary and industrials, are now up to levels near prior highs which are thought to be important from a price perspective.”

Shares of Boeing and General Electric led the decline. Boeing dropped more than 4% after Bank of America Merrill Lynch cut its rating on the aerospace giant to neutral from buy. The bank said it expects production of the 737 Max jet to be delayed by six to nine months. This follows a deadly plane crash from last month that involved a 737 Max plane.

GE, meanwhile, fell more than 5% after J.P. Morgan downgraded the stock, noting: “We believe many investors are underestimating the severity of the challenges and underlying risks at GE, while overestimating the value of small positives.”


Company: cnbc, Activity: cnbc, Date: 2019-04-08  Authors: fred imbert, spencer platt, getty images
Keywords: news, cnbc, companies, boeing, max, bank, 737, decline, dow, fell, winning, newton, 80point, industrial, starts, led, week


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Boeing to cut 737 Max production beginning in mid-April

Boeing is cutting production of the 737 Max jets as the company moves quickly to finalize a fix that will get the grounded aircraft flying again. “We’re adjusting the 737 production system temporarily to accommodate the pause in MAX deliveries, allowing us to prioritize additional resources to focus on software certification and returning the MAX to flight,” Boeing Chairman and CEO Dennis Muilenburg said in a statement announcing the rate cut. Muilenburg said the aerospace giant is already worki


Boeing is cutting production of the 737 Max jets as the company moves quickly to finalize a fix that will get the grounded aircraft flying again. “We’re adjusting the 737 production system temporarily to accommodate the pause in MAX deliveries, allowing us to prioritize additional resources to focus on software certification and returning the MAX to flight,” Boeing Chairman and CEO Dennis Muilenburg said in a statement announcing the rate cut. Muilenburg said the aerospace giant is already worki
Boeing to cut 737 Max production beginning in mid-April Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-05  Authors: phil lebeau, lindsey wasson
Keywords: news, cnbc, companies, dropping, cut, beginning, rate, month, production, 737, muilenburg, midapril, flying, max, boeing


Boeing to cut 737 Max production beginning in mid-April

Boeing is cutting production of the 737 Max jets as the company moves quickly to finalize a fix that will get the grounded aircraft flying again.

Boeing’s monthly production of the aircraft, involved in two plane crashes since October, is dropping by 20 percent from the current level of 52 a month to 42 a month, the company said Friday.

“We’re adjusting the 737 production system temporarily to accommodate the pause in MAX deliveries, allowing us to prioritize additional resources to focus on software certification and returning the MAX to flight,” Boeing Chairman and CEO Dennis Muilenburg said in a statement announcing the rate cut. Muilenburg said the aerospace giant is already working with suppliers to, “minimize operational disruption and financial impact of the production rate change.”

The production cut is likely to weigh on shares of Boeing which have held up relatively well after initially dropping more than 10% in mid-March following the crash of an Ethiopian Airlines 737 Max-8. It was the second crash of a 737 Max in the last six months and lead countries around the world to ground the airplane or ban it from flying in their airspace.


Company: cnbc, Activity: cnbc, Date: 2019-04-05  Authors: phil lebeau, lindsey wasson
Keywords: news, cnbc, companies, dropping, cut, beginning, rate, month, production, 737, muilenburg, midapril, flying, max, boeing


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Southwest cuts revenue outlook on Boeing 737 Max groundings

Southwest Airlines trimmed its revenue forecast Wednesday, citing the grounding of its Boeing 737 Max planes. The Federal Aviation Administration grounded Boeing 737 Max planes earlier this month following two fatal crashes. Investigators have noted “clear similarities” between an Ethiopian Airlines crash of a 737 Max on March 10 and another deadly crash of that model of plane in Indonesia in October. Southwest operates an all-Boeing 737 fleet, and has 34 737 Max 8 planes in its fleet of about 7


Southwest Airlines trimmed its revenue forecast Wednesday, citing the grounding of its Boeing 737 Max planes. The Federal Aviation Administration grounded Boeing 737 Max planes earlier this month following two fatal crashes. Investigators have noted “clear similarities” between an Ethiopian Airlines crash of a 737 Max on March 10 and another deadly crash of that model of plane in Indonesia in October. Southwest operates an all-Boeing 737 fleet, and has 34 737 Max 8 planes in its fleet of about 7
Southwest cuts revenue outlook on Boeing 737 Max groundings Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-27  Authors: leslie josephs, mike blake
Keywords: news, cnbc, companies, 737, earlier, revenue, quarter, expects, planes, crash, cuts, forecast, outlook, southwest, groundings, boeing, max


Southwest cuts revenue outlook on Boeing 737 Max groundings

Southwest Airlines trimmed its revenue forecast Wednesday, citing the grounding of its Boeing 737 Max planes.

The Dallas-based airline expects its revenue per available seat mile, a key industry metric of how much an airline generates for each seat it flies a mile, to grow 2 to 3 percent compared with an earlier forecast of as much as 4 percent.

Southwest shares were up 1.5 percent in late-morning trading.

The Federal Aviation Administration grounded Boeing 737 Max planes earlier this month following two fatal crashes. Investigators have noted “clear similarities” between an Ethiopian Airlines crash of a 737 Max on March 10 and another deadly crash of that model of plane in Indonesia in October.

Southwest operates an all-Boeing 737 fleet, and has 34 737 Max 8 planes in its fleet of about 750 aircraft. The carrier said it expects to have canceled 9,400 flights in the first quarter, 2,800 of them because of the grounded Max planes.

Southwest said its operating costs, excluding fuel, in the quarter will likely rise 10 percent from a year ago, up from a previous forecast of a 6 percent year-over-year increase.

The airline said it expects to lose $150 million in revenue in the first quarter of 2019, up from a February estimate of $60 million, due to weather-related cancellations, maintenance issues, weak leisure-travel demand and the Max groundings.

It’s a small amount compared with the $5.3 billion in revenue analysts expect Southwest to generate in the first three months of 2019, but investors are focused on how the suspension of the 737 Max planes will financially impact airlines.

American Airlines earlier this week said it planned to cancel about 90 flights a day through April 24 due to the Max grounding. That period encompasses the busy Easter and Passover travel period.

Boeing is scheduled on Wednesday morning to outline the changes to a piece of software that Indonesian investigators have indicated played a role in the Lion Air crash in October.

“Due to the current uncertainty regarding the duration of the Max groundings and any requirements for reinstatement of the aircraft into service, it is difficult for the company to forecast the impact of the MAX groundings beyond first quarter 2019,” Southwest said.

As of March 13, Southwest said it had 41 deliveries of Max planes scheduled for this year.

Southwest reports first-quarter earnings in late April.


Company: cnbc, Activity: cnbc, Date: 2019-03-27  Authors: leslie josephs, mike blake
Keywords: news, cnbc, companies, 737, earlier, revenue, quarter, expects, planes, crash, cuts, forecast, outlook, southwest, groundings, boeing, max


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