Southwest Airlines on Thursday became the first carrier to extend its cancellation of the Boeing 737 Max into 2020, while at the same time making a critical logistics move to counter the effects of not being able to use the aircraft.
The Dallas-based carrier said it will not fly the 737 Max until at least January 5, the latest of any airline after repeated delays have grounded the aircraft since March. The 737 Max has not been used since then due to two fatal crashes that killed more than 340 passengers and crew.
Southwest also acknowledged the effects the 737 Max is having, especially considering the airline uses more of those planes than anybody else - 34 of its 750-plane fleet.
As a result, the carrier is pulling out of Newark-Liberty International Airport and will consolidate its New York City-centric operations solely at LaGuardia Airport.
"As such, we are taking necessary steps to mitigate damages and optimize our aircraft and resources," Southwest said in an earnings release.
Starting Nov. 3, Southwest will no longer operate out of Newark, where flights have not been as profitable as the airline had hoped.
Nonetheless, Southwest announced a small second-quarter profit although it was not as big as originally forecasted. Strong bookings helped offset the grounding of the 737 Max although it said it took a $175 million loss to its operating income in the quarter from the Max grounding.
In addition, in a big day for Southwest news, the airline announced plans to add flights to Hawaii and Mexico.
The airline didn't reveal specifics Thursday but said it will resume its Hawaii growth plans next month. it will also begin flights to Cozumel, Mexico, from Houston beginning next year pending regulatory approval.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
