Boeing's 737 Max grounding is going on so long it will disrupt holiday air travel
Boeing this week said that it's testing a software fix for an automated flight-control system it added to the Max jetliners that was implicated in two crashes — one in Indonesia in October and another in Ethiopia in March — that killed 346 people. CEO Dennis Muilenburg said he expects the company will submit those fixes and other information needed for the plane to fly again to the FAA in September.
"If demand remains strong as it appears to be, looking into the fall, I think there's going to be plenty of competition by consumers for the cheapest seats," said Henry Harteveldt, a former airline executive and founder of travel-industry consulting firm Atmosphere Research Group. That strategy has worked "relatively successfully" because it is dealing mainly with flights between large airports, but peak holiday travel raises demand for flights between large hubs and smaller airports "as travelers head home for the holidays," noted Hayley Berg, an economist at flight-tracking site Hopper.
That could mean fuller and more expensive flights for travelers, just when they need to get home for the holidays. Southwest said it expects revenue for each seat it flies a mile, a gauge of how much airlines are making for the amount of seats they're offering, to rise as much as 5% from a year ago in the third quarter, partly driven by the Max grounding.
The Dallas-based airline has 34 Boeing 737 planes and expected to receive 41 more this year. That means that the airline will have to cancel more flights than it had in previous months. In the second quarter alone, Southwest canceled 20,000 flights.
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