Air Canada, like Southwest Airlines, has removed 737 Max flights from its schedule into 2020.
According to a report in Bloomberg, Canada’s largest air carrier will reduce capacity and curb earnings for the 3rd quarter even as it beat forecasts in the second.
“The impact of the Boeing 737 Max grounding will be felt more acutely in our very busy summer period,” Calin Rovinescu, president and chief executive officer of Air Canada said in an earnings statement.
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Rovinescu added that the removal of Boeing 737 Max will last at least through January 8, 2020.
This “reflects our prudent approach to scheduling, giving customers certainty when booking their fall and especially their winter holiday travel,” he said.
In the earnings statement, Air Canada also projected a drop in capacity of 2 percent in the third quarter. Third-quarter earnings before interest, taxes, depreciation and amortization is expected to increase by about 5%, short of analysts’ estimates.
Southwest Airlines similarly extended its cancelation of the controversial Boeing planes until at least January 5, 2020. As a result, the airline is pulling out of Newark-Liberty International and is consolidating service to New York’s La Guardia airport.
“As such, we are taking necessary steps to mitigate damages and optimize our aircraft and resources,” Southwest said in an in its earnings release.
In June, Boeing announced that the Boeing 737 Max aircraft would again be delayed and hopes that the planes would be back in service by the end of the summer were dashed. The planes were grounded in March after two separate crashes resulted in the deaths of 346 people.