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Southwest 2019 earnings, capacity fell because of 737 Max - Business Insider

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Southwest had a mess of a year because of the 737 Max, and it's only going to get worse — but there are a few bright spots

Although profits and capacity fell, and headwinds look poised to continue well into 2020, there were still a few bright points, including a nimble and efficient operations performance, despite the challenges.Southwest reported its fourth quarter and full year 2019 earnings on Thursday, and at first glance, news was bleak thanks to the Boeing 737 Max

Despite the profit fall-off, there was an operation bright side, according to Robert Mann, an airline consultant and former executive. Although Southwest has reached a settlement with Boeing for compensation related to the grounding through 2019, Kelly warned that there would still be negative effects through 2020 until the plane reenters commercial service.

The airline said it expects capacity to fall 1.5 to 2 percent in the first quarter, and declined to make a full-year forecast due to the uncertainty surrounding the Max.

 

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