Airlines Plan for Another Summer Without Boeing's 737 MAX

By Alison Sider and Doug Cameron

Airlines are planning for a second peak travel season this summer without their Boeing Co. 737 MAX jets.

Southwest Airlines Co., the world's largest MAX operator, said Thursday that it has cut the plane from its schedule through Aug. 10, two months longer than planned.

Boeing said last month that it didn't expect regulators to approve the MAX to fly again before mid-year. The plane maker has been trying to make more conservative assumptions for the return of the MAX after multiple estimates proved too optimistic, forcing airlines to adjust their plans again and again.

Airlines managed through last summer by trimming service from routes with multiple flights and rerouting passengers. Some kept older planes flying longer, with others renting alternative jets to fill the gap.

Panama-based Copa Holdings SA on Thursday also pushed back the MAX from its schedules until September. And Norwegian Air Shuttle ASA said Thursday that it doesn't expect any of its 18 MAX jets to fly before September, having planned previously to fly them this summer. The airline is due to receive another 16 MAX jets this year, 14 of which have already been built.

Chief Executive Geir Karlsen said on investor call that it's "completely unrealistic" all these will arrive as scheduled. He said Norwegian is renting alternative jets and may not need all the planes it's ordered for the winter schedule.

Airlines typically receive some cancellation options when a plane is more than a year late, which he said he expected some carriers to exercise. "I think Boeing is sitting there today expecting that at least some of the customers will cancel," Mr Karlsen said.

American Airlines Group Inc. and United Airlines Holding Inc. also have indicated that further schedule adjustments are likely. Both carriers currently have the MAX on their schedules again from early June.

Write to Alison Sider at [e-mail] and Doug Cameron at [e-mail]

(END) Dow Jones Newswires

February 13, 2020 11:18 ET (16:18 GMT)

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