How Bad Is The Halting Of 737 Max Production For Airlines?
Zacks Investment Research | Jan 23, 2020 08:12PM ET
Boeing’s (NYSE:BA) troubles began last March after its best-selling 737 Max jets were grounded post two crashes that claimed 346 lives. The consequences have been crippling for the aircraft manufacturing giant and airliners which operated the jet.
In December 2019, Boeing decided to temporarily suspend the production of its 737 Max jetliners, starting January 2020. This came as another big blow for some of the U.S.-based airline companies that operate the 737 Max in huge numbers. Big airliners in the country, namely, Southwest Airlines (NYSE:LUV) , United Airlines (NASDAQ:UAL) and American Airlines Group (NASDAQ:AAL) eventually decided to postpone the return of 737 Max till at least early June.
A Slowdown for Airlines
The grounding affected revenues of Southwest Airlines, the biggest operator of 737 Max in the United States, by around $435 million during the first nine months of 2019, per a Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.