Southwest Airlines cautioned that the 737 Max suspensions are affecting its ticket sales. But Southwest’s difficulties extend beyond Boeing. The airline in recent time has warned financiers that it has called off 9,400 flights owing to weather and its argument with mechanics besides Boeing’s suspension of the 737 Max aircraft. Southwest stated that the number of seats it has to put up for sale in this quarter would be much lower than it earlier anticipated since it is not flying as many planes. It asserted 2,800 of the terminations were owing to the Boeing 737 Max grounding. The airline also revealed that has a reduction on the number of flights during April 20 in expectation of a persisted grounding of its 737 Max planes.
Southwest also reported it would lose a total of 2,800 flights in this quarter since “unscheduled upholding disturbances arising from indenture conciliations” with its mechanics union. The union has clashed the airlines allege that members are calling off sick or demanding extra work to place pressure on the organization during labor talks. The company stated it also lost 3,400 flights due to worse-than-anticipated weather during the quarter. It had earlier said softness in traveler bookings as the government close down would charge it $60 Million during the quarter. It disclosed the recent issues with the maintenance issues, 737 Max grounding, and weather would charge it an extra $150 Million in this quarter.
Recently, Southwest Airlines was in news as its stock fell following unit revenue and capacity guidance cut. Shares of Southwest Airlines dropped by 2.6% in premarket trade, after the air carrier trimmed its first-quarter unit proceed and capacity guidance and increased its costs outlook, highlighting the negative effects of the government close down, flight cancellations, and weather disruptions. The company now anticipates RASM (revenue per available seat mile) to increase by 2% to 3% from a year ago, which is down from past guidance of a 3% to 4% surge.
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