United Airlines posts higher profits and buys used Boeing 737s as Max grounding drags on

Strong travel demand pushed United Airlines Holdings second-quarter profit up more than 50% from a year ago, despite continued challenges from the grounding of the Boeing 737 Max. The Boeing 737 Max planes have been grounded worldwide since mid-March following two fatal crashes — one in Indonesia in October and another in Ethiopia in March — that killed a total of 346 people. United, which has 14 737 Max 9 jets, had expected the planes to return by Labor Day. American has 24 Boeing 737 Max jets


Strong travel demand pushed United Airlines Holdings second-quarter profit up more than 50% from a year ago, despite continued challenges from the grounding of the Boeing 737 Max. The Boeing 737 Max planes have been grounded worldwide since mid-March following two fatal crashes — one in Indonesia in October and another in Ethiopia in March — that killed a total of 346 people. United, which has 14 737 Max 9 jets, had expected the planes to return by Labor Day. American has 24 Boeing 737 Max jets
United Airlines posts higher profits and buys used Boeing 737s as Max grounding drags on Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-16  Authors: leslie josephs
Keywords: news, cnbc, companies, united, 737, demand, drags, planes, boeing, grounding, share, max, jets, posts, travel, profits, used, buys, higher


United Airlines posts higher profits and buys used Boeing 737s as Max grounding drags on

Strong travel demand pushed United Airlines Holdings second-quarter profit up more than 50% from a year ago, despite continued challenges from the grounding of the Boeing 737 Max.

United did not break out how the grounding, now in its fifth month, affected its bottom line but said it signed an agreement to buy 19 used Boeing 737-700 planes, older jets that it can use to meet growing demand. It expects those planes to be delivered in December.

The Boeing 737 Max planes have been grounded worldwide since mid-March following two fatal crashes — one in Indonesia in October and another in Ethiopia in March — that killed a total of 346 people. Regulators have not said when they expect to allow the planes to fly again, forcing airlines to cancel thousands of flights during the peak summer travel season and through the fall.

Airlines have scrambled to meet demand by combining flights and making other schedule tweaks.

On Friday, United removed the planes from its schedule through the start of November, with no end in sight to the grounding. United, which has 14 737 Max 9 jets, had expected the planes to return by Labor Day. American Airlines on Sunday also took the planes out of its schedules until early November, a move that would mean the cancellation of about 115 flights a day. American has 24 Boeing 737 Max jets in its fleet.

Delta Air Lines, which does not have the troubled plane in its fleet, said it has marginally benefited as rivals’ operations are hamstrung from the grounding.

In the three months ended June 30, net income rose 54% to $1.1 billion, or $4.02 a share, from $683 million, or $2.48 per share a year ago. On an adjusted basis, it earned $4.21 a share, beating analysts’ expectations of $4.09 a share.

Revenue rose close to 6% from a year ago to $11.4 billion, slightly above the $11.36 billion analysts had forecast, as demand for seats in every region where it operates climbed in the busy travel period.

The Chicago-based carrier also raised the low-end of its profit forecast for the year to $10.50 to $12 per share from an estimate of as low as $10 a share.

Executives from the second-largest U.S. carrier will hold a call with analysts on Wednesday at 10:30 a.m. ET, when they will likely face questions on how the grounding of the Boeing 737 Max could affect its operations through the end of the year.

Shares were up 0.6% in postmarket trading.

American and Southwest report second-quarter results on July 25.


Company: cnbc, Activity: cnbc, Date: 2019-07-16  Authors: leslie josephs
Keywords: news, cnbc, companies, united, 737, demand, drags, planes, boeing, grounding, share, max, jets, posts, travel, profits, used, buys, higher


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United Airlines extends Boeing 737 Max cancellations to early November

United Airlines on Friday said it will extend its Boeing 737 Max groundings through Nov. 3, amounting to 2,100 cancellations in September and 2,900 in October. United, which has 14 Max jets in its fleet, had previously removed the jets from its schedule through Aug. 3. “We are continuing to work through the schedule to try and swap and upgauge aircraft to mitigate the disruption caused by the grounding of the MAX,” United said in a statement. The 737 Max has been grounded worldwide since mid-Mar


United Airlines on Friday said it will extend its Boeing 737 Max groundings through Nov. 3, amounting to 2,100 cancellations in September and 2,900 in October. United, which has 14 Max jets in its fleet, had previously removed the jets from its schedule through Aug. 3. “We are continuing to work through the schedule to try and swap and upgauge aircraft to mitigate the disruption caused by the grounding of the MAX,” United said in a statement. The 737 Max has been grounded worldwide since mid-Mar
United Airlines extends Boeing 737 Max cancellations to early November Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: emma newburger
Keywords: news, cnbc, companies, cancellations, schedule, boeing, united, early, 737, likely, removed, max, software, try, extends, jets, airlines


United Airlines extends Boeing 737 Max cancellations to early November

United Airlines on Friday said it will extend its Boeing 737 Max groundings through Nov. 3, amounting to 2,100 cancellations in September and 2,900 in October.

United, which has 14 Max jets in its fleet, had previously removed the jets from its schedule through Aug. 3.

“We are continuing to work through the schedule to try and swap and upgauge aircraft to mitigate the disruption caused by the grounding of the MAX,” United said in a statement.

“We continue to automatically book affected customers on alternate flights. If we are unable to place them on a different flight, we will proactively reach out to try and offer other options.”

The 737 Max has been grounded worldwide since mid-March, after its anti-stall software was implicated in two deadly crashes in October and March.

Other major airlines including American and Southwest have canceled thousands of flights during the busy summer travel season, and have further removed the Max from schedules through Sept. 3 and Oct. 1, respectively. Those airlines will likely further extend cancellations.

United reports second-quarter results after the market closes on Tuesday. Delta Air Lines, which does not fly the 737 Max, said on Thursday that it’s seeing a small benefit as rivals grapple with the grounding.

Boeing deliveries are stopped until aviation regulators approve the jet’s return to service. The airplane maker said in June that it would likely take until September or later to introduce a new software fix after the Federal Aviation Administration identified a new software issue a month ago.


Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: emma newburger
Keywords: news, cnbc, companies, cancellations, schedule, boeing, united, early, 737, likely, removed, max, software, try, extends, jets, airlines


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Boeing 737 program manager to retire amid crisis over jet’s grounding

Mark Jenks, who has worked on Boeing’s potential new mid-market airplane (NMA) project, will assume the role as lead of the 737 program, McAllister said. Since his first job as a liaison engineer, to his current job leading the 737 program and Renton site, Eric has worked across Commercial Airplanes. Mark Jenks will step into the position to lead the 737 program and Renton site. With Mark’s move, we also have the opportunity to continue to invest in the NMA development. His strong track record o


Mark Jenks, who has worked on Boeing’s potential new mid-market airplane (NMA) project, will assume the role as lead of the 737 program, McAllister said. Since his first job as a liaison engineer, to his current job leading the 737 program and Renton site, Eric has worked across Commercial Airplanes. Mark Jenks will step into the position to lead the 737 program and Renton site. With Mark’s move, we also have the opportunity to continue to invest in the NMA development. His strong track record o
Boeing 737 program manager to retire amid crisis over jet’s grounding Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: emma newburger, michael sheetz
Keywords: news, cnbc, companies, president, role, program, boeing, crisis, amid, 737, eric, grounding, retire, nma, mark, jets, development, vice, manager, service


Boeing 737 program manager to retire amid crisis over jet's grounding

Mark Jenks, who has worked on Boeing’s potential new mid-market airplane (NMA) project, will assume the role as lead of the 737 program, McAllister said.

Mike Sinnett, Boeing Commercial Airplanes vice president of product development and future airplane development, will also take over as vice president for NMA in addition to his current role, according to the memo.

Here’s the full memo:

“These are unprecedented times for us, as our primary focus remains the safe return of service for the 737 MAX and driving quality and safety in all that we do.

To that end, I am grateful to Eric Lindblad for his strong leadership and tireless drive over the past 12 months leading the 737 program, as he has navigated some of the most difficult challenges our company has ever faced. He shared with me his desire to retire last year, and we will now begin to embark on a thoughtful and seamless transition plan.

For the past 34 years, Eric has dedicated his career to Boeing. Since his first job as a liaison engineer, to his current job leading the 737 program and Renton site, Eric has worked across Commercial Airplanes. Over the past three decades, Eric has made an impact on countless employees and has led some of the biggest bets of our business. And, he has done it through a lens of doing what’s right and continuing to ensure our relentless focus on safety and quality.

I have admired Eric’s resolve and drive, and we are grateful for his service and dedication.

Mark Jenks will step into the position to lead the 737 program and Renton site. He will work closely with Eric over the next several weeks to ensure a seamless transition as we approach the safe return to service of the 737 MAX.

As the vice president of the New Mid-Market (NMA) program, Mark has led all aspects of the development program ranging from the business case to the definition of the production system, services offerings and airplane configuration. Mark also led the 787 program during some of its most challenging of years, and has held several leadership roles within Boeing’s defense and space businesses. A true One Boeing leader, Mark will leverage his learnings and expertise for our 737 program as we carefully and fully return to the 737 MAX to service and meet our customer commitments.

With Mark’s move, we also have the opportunity to continue to invest in the NMA development. I’m pleased to announce that Mike Sinnett will assume the role of vice president for the NMA in addition to his current role leading the Product Strategy and Future Airplane Development Team. Let me be clear – the NMA team will continue to operate as a program, and I am looking forward to Mike’s leadership in this important effort. Before leading the Product Strategy and Future Airplane Development organization, Mike served as vice president and chief project engineer for the 787 program. His strong track record of new development programs will be instrumental to the long-term success of the NMA program. Mike will also continue to play a pivotal role in our stakeholder and customer outreach efforts on the MAX certification and return to service efforts.

All three of these leaders have consistently demonstrated a One Boeing approach to their work, and have been living the Boeing Behaviors. Please join me in congratulating Eric on his planned retirement, and welcoming Mark and Mike to their new leadership roles. “


Company: cnbc, Activity: cnbc, Date: 2019-07-11  Authors: emma newburger, michael sheetz
Keywords: news, cnbc, companies, president, role, program, boeing, crisis, amid, 737, eric, grounding, retire, nma, mark, jets, development, vice, manager, service


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Boeing wins first 737 Max order since deadly crashes in a 200-plane vote of confidence

An aerial photo shows Boeing 737 MAX airplanes parked on the tarmac at the Boeing Factory in Renton, Washington, U.S. March 21, 2019. Boeing on Tuesday won its first order for 737 Max planes since the jets were grounded worldwide in March after two fatal crashes. International Consolidated Airlines Group, or IAG, signed a letter of intent at the Paris Air Show to order 200 Boeing 737 Max planes. Aviation authorities grounded the Boeing 737 Max worldwide after two crashes within five months kille


An aerial photo shows Boeing 737 MAX airplanes parked on the tarmac at the Boeing Factory in Renton, Washington, U.S. March 21, 2019. Boeing on Tuesday won its first order for 737 Max planes since the jets were grounded worldwide in March after two fatal crashes. International Consolidated Airlines Group, or IAG, signed a letter of intent at the Paris Air Show to order 200 Boeing 737 Max planes. Aviation authorities grounded the Boeing 737 Max worldwide after two crashes within five months kille
Boeing wins first 737 Max order since deadly crashes in a 200-plane vote of confidence Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-18  Authors: leslie josephs
Keywords: news, cnbc, companies, wins, deadly, 200plane, airlines, vote, crashes, regulators, max, boeing, iag, confidence, jets, order, 737, planes, flights


Boeing wins first 737 Max order since deadly crashes in a 200-plane vote of confidence

An aerial photo shows Boeing 737 MAX airplanes parked on the tarmac at the Boeing Factory in Renton, Washington, U.S. March 21, 2019.

Boeing on Tuesday won its first order for 737 Max planes since the jets were grounded worldwide in March after two fatal crashes. The vote of confidence from British Airways’ parent sent shares of the manufacturer sharply higher.

International Consolidated Airlines Group, or IAG, signed a letter of intent at the Paris Air Show to order 200 Boeing 737 Max planes. Boeing won’t post the planes on its monthly order tally until the agreement is finalized.

Aviation authorities grounded the Boeing 737 Max worldwide after two crashes within five months killed a total of 346 people. Boeing and airlines are awaiting approval from regulators to resume flights with the jets, but officials have said they have no firm timeline so far.

Boeing shares surged 5.4% to close at $373.96, outpacing the broader market and leading the Dow Jones Industrial Average higher. It was their biggest one-day percentage gain in almost five months.

IAG will use the jets order, which includes the 737 Max 8 and the larger Max 10 that Boeing is developing, for short-haul flights across its airlines, which also include Iberia, Aer Lingus and low-cost carriers Vueling and Level. The group’s narrowbody fleet is mostly A320s made by Boeing’s chief rival, Airbus.

“We have every confidence in Boeing and expect that the aircraft will make a successful return to service in the coming months having received approval from the regulators,” said IAG CEO Willie Walsh.

Boeing cut production of the 737 Max, its best-selling aircraft ever, by one-fifth and suspended deliveries of the planes after they were grounded.

The surprise order is welcome news for Boeing, which entered the air show hamstrung by the fallout from the crashes. It faces several investigations and lawsuits, customer airlines that have had to cut flights during the peak summer travel season due to the planes’ grounding, and passengers who may be too skittish to fly the 737 Max once regulators give it a green light.

The order would be worth $24 billion at list prices, Boeing said, but airlines often receive discounts. The planes that IAG is planning to buy would be delivered between 2023 and 2027.


Company: cnbc, Activity: cnbc, Date: 2019-06-18  Authors: leslie josephs
Keywords: news, cnbc, companies, wins, deadly, 200plane, airlines, vote, crashes, regulators, max, boeing, iag, confidence, jets, order, 737, planes, flights


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Consumer confidence in 737 Max jets ‘going to take a while to come back,’ says Delta CEO Ed Bastian

As airlines extend cancellations of the grounded Boeing 737 Max, Delta Air Lines CEO Ed Bastian said he thinks it’ll likely take “longer than anyone would like it to be” for the jets to return to service. “So I think Boeing, as well as the airlines, will certainly be cautious as they bring that aircraft back to market. The 737 Max has been grounded across the globe since mid-March after a deadly crash involving the jet in Ethiopia. Delta does not have any 737 Max jets in its fleet, which has hel


As airlines extend cancellations of the grounded Boeing 737 Max, Delta Air Lines CEO Ed Bastian said he thinks it’ll likely take “longer than anyone would like it to be” for the jets to return to service. “So I think Boeing, as well as the airlines, will certainly be cautious as they bring that aircraft back to market. The 737 Max has been grounded across the globe since mid-March after a deadly crash involving the jet in Ethiopia. Delta does not have any 737 Max jets in its fleet, which has hel
Consumer confidence in 737 Max jets ‘going to take a while to come back,’ says Delta CEO Ed Bastian Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: ashley turner
Keywords: news, cnbc, companies, travel, ed, bastian, consumer, come, boeing, 737, think, international, delta, going, confidence, max, jets, ceo


Consumer confidence in 737 Max jets 'going to take a while to come back,' says Delta CEO Ed Bastian

As airlines extend cancellations of the grounded Boeing 737 Max, Delta Air Lines CEO Ed Bastian said he thinks it’ll likely take “longer than anyone would like it to be” for the jets to return to service.

“I just think consumer confidence in the product is going to take a while to come back,” Bastian told CNBC’s Carl Quintanilla in a wide-ranging interview. “So I think Boeing, as well as the airlines, will certainly be cautious as they bring that aircraft back to market. Certainly that’s what we would be. ”

The 737 Max has been grounded across the globe since mid-March after a deadly crash involving the jet in Ethiopia. Less than five months earlier, a Boeing Max crashed in Indonesia. The disasters killed a total of 346 people. Investigators said the jet’s MCAS flight control system, which is designed to push the aircraft’s nose down to prevent stalling, was involved in the crashes.

Boeing said it has completed software changes for the jets, but the Federal Aviation Administration and other international flight agencies have yet to approve the updates.

Delta does not have any 737 Max jets in its fleet, which has helped its stock to perform better than some of its peers that do. Delta shares, which have a market value of $36.3 billion, are nearly 10% higher this year, while American and United have seen their stocks decline.

Bastian said Boeing is a “great” company that has “all hands on deck” to solve the software issue.

“Their innovation creates magic for us,” Bastian said. “It’s our lifeblood to what we do.”

American, United and Southwest all fly the 737 Max, but have been forced to cancel flights involving the jets. The FAA has yet to say when the aircraft can return to service, but Boeing’s CEO Dennis Muilenburg has predicted the planes will be up and running by the end of the year.

“I don’t think this is a marketing issue, I think this is a time issue,” Bastian said. “It’s going to take time for people to see the confidence that the pilots and I think the employees of the airlines are going to need to regain, as well. So whether it’s training, whether it’s time, there will be a pretty long induction phase here.”

Bastian also touched on travel demand in the interview.

Though Bastian said Delta has not seen a hit to demand on travel in their numbers, he expects China trade tensions and Beijing travel warnings for visiting the U.S. could be causing “caution lights” for international travelers. He also said the strength of the U.S. dollar is making it more expensive to enter the country.

“We’re not as welcoming an environment for the international traveler as we could be,” Bastian said.


Company: cnbc, Activity: cnbc, Date: 2019-06-12  Authors: ashley turner
Keywords: news, cnbc, companies, travel, ed, bastian, consumer, come, boeing, 737, think, international, delta, going, confidence, max, jets, ceo


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US airlines are bumping more travelers as Boeing 737 Max planes grounded

After boasting record low bumping rates, U.S. airlines in the first three months of this year denied boarding to travelers at the highest rate since 2017, according to Department of Transportation data released Wednesday. The increase was partially driven by the grounding of the Boeing 737 Max, which took more than 70 of the high-capacity planes out of service. American Airlines and Southwest Airlines, which have 58 of the jets in their fleets combined and posted higher-than-average bumping rate


After boasting record low bumping rates, U.S. airlines in the first three months of this year denied boarding to travelers at the highest rate since 2017, according to Department of Transportation data released Wednesday. The increase was partially driven by the grounding of the Boeing 737 Max, which took more than 70 of the high-capacity planes out of service. American Airlines and Southwest Airlines, which have 58 of the jets in their fleets combined and posted higher-than-average bumping rate
US airlines are bumping more travelers as Boeing 737 Max planes grounded Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: leslie josephs
Keywords: news, cnbc, companies, max, planes, bumping, airlines, measures, jets, rates, passengers, boeing, travelers, months, grounding, transportation, grounded, 737


US airlines are bumping more travelers as Boeing 737 Max planes grounded

Here’s some unwelcome news to start the summer travel season: Your chances of getting bumped off your flight is on the rise.

After boasting record low bumping rates, U.S. airlines in the first three months of this year denied boarding to travelers at the highest rate since 2017, according to Department of Transportation data released Wednesday. The increase was partially driven by the grounding of the Boeing 737 Max, which took more than 70 of the high-capacity planes out of service.

Aviation authorities worldwide, including the Federal Aviation Administration, grounded the Boeing jets after two fatal crashes of the model, one in Indonesia and another in Ethiopia, within five months of one another. A total of 346 people were killed in the two crashes.

American Airlines and Southwest Airlines, which have 58 of the jets in their fleets combined and posted higher-than-average bumping rates, told federal officials that the 737 Max grounding hurt their results, the Department of Transportation said in its report. Bad weather added to the number of passengers who were denied boarding, said American Airlines spokesman Ross Feinstein.

After the violent dragging of passenger David Dao off a plane in April 2017 sparked a public-relations disaster for United Airlines, carriers have taken measures to avoid involuntary bumping. Measures include alerting passengers of oversold flights before they get to the airport so they can opt to rebook online and increasing compensation for passengers who are okay with getting bumped.


Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: leslie josephs
Keywords: news, cnbc, companies, max, planes, bumping, airlines, measures, jets, rates, passengers, boeing, travelers, months, grounding, transportation, grounded, 737


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Boeing CEO says troubled 737 Max jets should be flying by the end of the year

Boeing Chief Executive Dennis Muilenburg speaks during a press conference after the annual shareholders meeting at the Field Museum on April 29, 2019 in Chicago, Illinois. The Federal Aviation Administration is participating in simulated flights with Boeing this week, Muilenburg said in an an interview with CNBC’s The Exchange. After that step, Boeing plans to schedule actual test flights. Boeing has completed a software update for an anti-stall system that has been implicated in the two crashes


Boeing Chief Executive Dennis Muilenburg speaks during a press conference after the annual shareholders meeting at the Field Museum on April 29, 2019 in Chicago, Illinois. The Federal Aviation Administration is participating in simulated flights with Boeing this week, Muilenburg said in an an interview with CNBC’s The Exchange. After that step, Boeing plans to schedule actual test flights. Boeing has completed a software update for an anti-stall system that has been implicated in the two crashes
Boeing CEO says troubled 737 Max jets should be flying by the end of the year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-03  Authors: leslie josephs
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Boeing CEO says troubled 737 Max jets should be flying by the end of the year

Boeing Chief Executive Dennis Muilenburg speaks during a press conference after the annual shareholders meeting at the Field Museum on April 29, 2019 in Chicago, Illinois.

Boeing’s CEO Dennis Muilenburg on Monday said it is conducting simulated flights with air-safety regulators this week and plans to fly its 737 Max aircraft with the Federal Aviation Administration “very soon” to get the grounded planes cleared to return to airline service.

Aviation officials worldwide grounded the planes in mid-March in the wake of two deadly crashes of the aircraft within five months of one another. The two crashes killed a total of 346 people.

Muilenburg said he expects that the planes will get a green light to fly again by the end of the year, but declined to provide a timeline.

The Federal Aviation Administration is participating in simulated flights with Boeing this week, Muilenburg said in an an interview with CNBC’s The Exchange. After that step, Boeing plans to schedule actual test flights.

Boeing has completed a software update for an anti-stall system that has been implicated in the two crashes.

Airlines that have purchased the 737 max, including American Airlines, United Airlines and Southwest Airlines have canceled thousands of flights due to the grounding and have scrambled to meet demand during the peak summer travel season.

The manufacturer will have to repair “damaged trust” of the flying public, Muilenburg said. Some airlines have said they won’t charge passengers skittish about the planes to switch to flights operated with other aircraft.


Company: cnbc, Activity: cnbc, Date: 2019-06-03  Authors: leslie josephs
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What you need to know about Boeing’s 737 Max crisis

Here is a look at what is happening and what to expect with the 737 Max grounded as the busy summer travel season approaches. In March, the FBI joined an investigation of the certification process for the company’s 737 Max jets. Boeing said Thursday it has developed a software update for the 737 Max, a key step in getting the aircraft flying again. “We’re making clear and steady progress and are confident that the 737 MAX with updated MCAS software will be one of the safest airplanes ever to fly


Here is a look at what is happening and what to expect with the 737 Max grounded as the busy summer travel season approaches. In March, the FBI joined an investigation of the certification process for the company’s 737 Max jets. Boeing said Thursday it has developed a software update for the 737 Max, a key step in getting the aircraft flying again. “We’re making clear and steady progress and are confident that the 737 MAX with updated MCAS software will be one of the safest airplanes ever to fly
What you need to know about Boeing’s 737 Max crisis Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: emma newburger leslie josephs, emma newburger, leslie josephs
Keywords: news, cnbc, companies, airlines, crisis, 737, crash, know, system, max, jets, need, boeing, pilots, planes, boeings


What you need to know about Boeing's 737 Max crisis

People walk past a part of the wreckage at the scene of the Ethiopian Airlines Flight ET 302 plane crash, near the town of Bishoftu, southeast of Addis Ababa, Ethiopia March 10, 2019. Tiksa Negeri | Reuters

Boeing 737 Max planes around the world remain grounded more than two months after the second of two fatal crashes of the jets that killed a total of 346 people. Multiple investigations have since been opened, both into the crashes themselves and the regulatory process to approve the planes. Lawmakers and federal investigators are specifically examining how the Federal Aviation Administration in 2017 came to give a green light to the jet — a more fuel-efficient version of Boeing’s workhorse aircraft that’s been flying since the late 1960s — without disclosures to pilots about a new anti-stall system, which has since been implicated in the two air disasters. The Chicago-based manufacturer’s stock has lost more than 16%, closing at $353.81 Thursday, since the most recent crash, on March 10, as the number of probes and lawsuits grew and Boeing suspended deliveries of its best-selling jets. Here is a look at what is happening and what to expect with the 737 Max grounded as the busy summer travel season approaches.

Ongoing investigations

Multiple federal investigations are examining the Max and how it was approved by regulators, along with the planes’ new anti-stall system, known as MCAS. Boeing is also facing lawsuits from the families of crash victims. In March, the FBI joined an investigation of the certification process for the company’s 737 Max jets. House and Senate panels have each launched investigations. Boeing said Thursday it has developed a software update for the 737 Max, a key step in getting the aircraft flying again. The company said it completed more than 360 hours of testing on 207 flights with the updated software. It’s also developed new training materials that the FAA is reviewing. The FAA requested more information, including how the pilots would operate the controls and displays in different circumstances, Boeing said. “We’re committed to providing the FAA and global regulators all the information they need, and to getting it right,” said CEO Dennis Muilenburg in a statement on Thursday. “We’re making clear and steady progress and are confident that the 737 MAX with updated MCAS software will be one of the safest airplanes ever to fly.” Boeing aims to make the MCAS anti-stall system less powerful and give pilots greater control. Investigators have pointed to the system as a factor in the crashes, since the jets’ noses were repeatedly pushed down after the system was fed erroneous information from a sensor. The updated system will also use data from multiple sensors instead of one. It’s unclear how long the FAA will take to approve the fix and deem the planes safe to take to the skies again. In April, the FAA said Boeing’s update was “operationally suitable” in an initial review, and recommended that pilots take additional computer-based training for MCAS. Boeing has also taken a lot of heat following reports that it knew of problems with one of the safety features well before the two crashes, but did not disclose the issues to airlines or regulators until after the Lion Air crash in October.

A group of men and boys examine electronics taken from a pile of twisted metal gathered by workers during the continuing recovery efforts at the crash site of Ethiopian Airlines flight ET302 on March 11, 2019 in Bishoftu, Ethiopia. Jemal Countess | Getty Images

The economic toll

Airlines have already missed out on hundreds of millions of dollars in revenue after aviation authorities ordered them to ground the planes. Southwest Airlines, which has 34 Boeing 737 Max jets in its fleet of about 750 planes, said the grounded jets contributed to $200 million in lost revenue during the first three months of the year. American Airlines, which has 24 of the jets, has canceled at least 15,000 flights through August so far. The cancellations due to the grounded Max each day equal about 2% of American’s daily summer flying and will reduce the airline’s pretax earnings this year by $350 million, the carrier said on April 26. Boeing said its costs in the first quarter rose by $1 billion from the groundings, though it can’t predict its financial performance for the rest of the year as deliveries of Max jets are on hold. It currently has a backlog of more than 4,000 orders for the 737 Max and recently cut monthly production of the jet from 52 to 42 planes in April. Analysts have speculated that the company faces billions of dollars in payments to airlines and families of crash victims. Several banks expect Boeing’s production cuts to hit U.S. GDP. Wells Fargo said in April that Boeing’s production cuts will reduce second-quarter GDP growth by 0.2%. Earlier in March, JP Morgan’s CEO said GDP could fall by 0.6% if production of the plane is halted temporarily. “Boeing’s production cuts are large enough to negatively impact incoming reads on the economy,” said Wells Fargo senior economist Sarah House.

Scrambling to restore trust

Boeing has scrambled to persuade airlines and passengers to rally behind the Max jet following the company’s clumsy response to the two fatal crashes. In an effort to win back public trust, Boeing is reportedly hiring some major public relations firms to help reintroduce the jet. On an earnings call in April, Boeing CEO Muilenburg said that pilots would act as key messengers. “We think a key voice in all of this will be the pilots for our airlines, and their voice is very important,” he said. “That bond between the passenger and the pilot is one that’s critical, and so we’re working with our airline customers and those pilot voices to ensure that we can build on that going forward.”

Muilenburg hasn’t said there’s anything wrong with the 737 Max design. Pilots and airlines have complained to Boeing for failing to provide information about new software after the first crash in Indonesia, as well as incomplete information about safety features in the cockpit. Even assurances from Boeing and airlines that the planes are safe may not necessarily resonate with travelers. A Barclays’ survey of airline passengers that was published earlier this month showed that many people will avoid the 737 Max “for an extended period” once it’s allowed to fly again, with over half of respondents saying they’d choose a different aircraft if given the choice. However, some aviation experts have said the stigma associated with the Max, and damage to Boeing’s reputation, will likely dissipate over time. “If Boeing does what it needs to do to fix the problem, if the airline is certified by safety regulators and goes on to fly reliably, then the stigma that exists now will fade away,” Henry Harteveldt, president of Atmosphere Research Group, told CNBC in April.

What’s next


Company: cnbc, Activity: cnbc, Date: 2019-05-16  Authors: emma newburger leslie josephs, emma newburger, leslie josephs
Keywords: news, cnbc, companies, airlines, crisis, 737, crash, know, system, max, jets, need, boeing, pilots, planes, boeings


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Watch Boeing’s annual shareholder meeting

[The stream is slated to start at 11:15 am ET. Please refresh the page if you do not see a player above at that time.] Boeing is hosting its shareholder annual meeting at its corporate headquarters in Chicago. Two leading shareholder advisory firms have proposed voting against reinstating CEO Dennis Muilenburg as executive chairman in the crash aftermath. The meeting also follows reports that Boeing failed to tell Southwest Airlines and the Federal Aviation Administration that the safety feature


[The stream is slated to start at 11:15 am ET. Please refresh the page if you do not see a player above at that time.] Boeing is hosting its shareholder annual meeting at its corporate headquarters in Chicago. Two leading shareholder advisory firms have proposed voting against reinstating CEO Dennis Muilenburg as executive chairman in the crash aftermath. The meeting also follows reports that Boeing failed to tell Southwest Airlines and the Federal Aviation Administration that the safety feature
Watch Boeing’s annual shareholder meeting Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: cnbccom staff
Keywords: news, cnbc, companies, boeings, max, shareholder, indonesia, muilenburg, watch, annual, jets, southwest, boeing, youtube, crash, meeting


Watch Boeing's annual shareholder meeting

[The stream is slated to start at 11:15 am ET. Please refresh the page if you do not see a player above at that time.]

Boeing is hosting its shareholder annual meeting at its corporate headquarters in Chicago. Shareholders will likely be eager to hear more about the impact of the 737 Max groundings on the planemaker’s future business after the jet’s anti-stall software was implicated in the crashes in Indonesia and Ethiopia.

Two leading shareholder advisory firms have proposed voting against reinstating CEO Dennis Muilenburg as executive chairman in the crash aftermath. Muilenburg defended that title on the earnings call last week.

The meeting also follows reports that Boeing failed to tell Southwest Airlines and the Federal Aviation Administration that the safety feature that warns pilots about malfunctioning sensors had been deactivated on the Max jets. Southwest did not know about the deactivation until after the Lion Air flight crash in Indonesia, and said that Boeing indicated in its manual that the disagree lights were functional, according to the Wall Street Journal.

The jets have been grounded since mid-March.

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Company: cnbc, Activity: cnbc, Date: 2019-04-29  Authors: cnbccom staff
Keywords: news, cnbc, companies, boeings, max, shareholder, indonesia, muilenburg, watch, annual, jets, southwest, boeing, youtube, crash, meeting


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Southwest Airlines first-quarter earnings take a hit from 737 Max groundings, government shutdown

Southwest Airlines first-quarter earnings took a hit from the prolonged grounding of the Boeing 737 Max jets that forced it to cancel more than 10,000 flights during the quarter, as well as the U.S. government shutdown and maintenance issues, the company said Thursday. The airline, which has 34 of the Max jets, said it lost more than $200 million in revenue during the quarter as a result. “Flight cancellations are expected to drive unit cost pressure for the duration of the MAX groundings,” Sout


Southwest Airlines first-quarter earnings took a hit from the prolonged grounding of the Boeing 737 Max jets that forced it to cancel more than 10,000 flights during the quarter, as well as the U.S. government shutdown and maintenance issues, the company said Thursday. The airline, which has 34 of the Max jets, said it lost more than $200 million in revenue during the quarter as a result. “Flight cancellations are expected to drive unit cost pressure for the duration of the MAX groundings,” Sout
Southwest Airlines first-quarter earnings take a hit from 737 Max groundings, government shutdown Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-25  Authors: emma newburger, mark ralston, afp, getty images
Keywords: news, cnbc, companies, billion, 737, max, airlines, jets, groundings, software, vs, revenue, southwest, hit, shutdown, quarter, earnings, firstquarter


Southwest Airlines first-quarter earnings take a hit from 737 Max groundings, government shutdown

Southwest Airlines first-quarter earnings took a hit from the prolonged grounding of the Boeing 737 Max jets that forced it to cancel more than 10,000 flights during the quarter, as well as the U.S. government shutdown and maintenance issues, the company said Thursday.

The airline, which has 34 of the Max jets, said it lost more than $200 million in revenue during the quarter as a result. The shutdown and groundings also impacted the company’s revenue per available seat mile by 2 points.

The carrier said it’s extending Max cancellations through Aug. 5. Still, its earnings and revenue were better than expected and its shares rose 2.5% in premarket trading Thursday.

Here’s what the airline reported, versus average analysts estimates compiled by Refinitiv:

Adjusted earnings: 70 cents vs 61 cents per share forecast

Revenue: $5.15 billion vs $5.12 billion forecast

The 737 Max has been grounded since mid-March after the jet’s anti-stall software was implicated in two fatal crashes in Ethiopia and Indonesia.

“Flight cancellations are expected to drive unit cost pressure for the duration of the MAX groundings,” Southwest Chief Executive Officer Gary Kelly said in a statement. He described the results as “solid” despite several challenges throughout the quarter.

“I am especially proud of our nearly 60,000 Employees for the commendable job under operationally difficult circumstances.”

The company expects fuel costs to rise next quarter and estimates second quarter fuel efficiency to be flat to down 1 percent, year-over-year, after the removal of its Max jets.

Raymond James downgraded Southwest stock and lowered its earnings projections in April, citing the Max groundings.

It’s unclear when the Max will return. Boeing, which expects a hit of more than $1 billion from the grounding, said it’s completed 96 flights totaling over 159 hours of air time with the new Max software fix.


Company: cnbc, Activity: cnbc, Date: 2019-04-25  Authors: emma newburger, mark ralston, afp, getty images
Keywords: news, cnbc, companies, billion, 737, max, airlines, jets, groundings, software, vs, revenue, southwest, hit, shutdown, quarter, earnings, firstquarter


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