B5
THE ASTORIAN • SATURDAY, JANUARY 25, 2020
Grounded Boeing jet holds back
profi ts, growth at airlines
By DAVID KOENIG
Associated Press
DALLAS — The three
big U.S. airlines that own
Boeing 737 Max jets don’t
expect the grounded plane
back in their fl eets until after
the the peak summer travel
season, and that promises to
lead to thousands more can-
celed fl ights and higher costs
well into another year.
On Thursday, American
Airlines executives said they
canceled 10,000 fl ights in the
fourth quarter because of the
idled planes.
Southwest Airlines said
the grounding cut its 2019
operating income by $828
million. The airline expected
to own about 75 Max jets by
now — 10% of its fl eet —
and the shortage is creating
“a crisis-like challenge,” said
CEO Gary Kelly.
The airlines planned to
add more fl ights in 2020 to
take advantage of strong
demand for travel. Now
Southwest fi gures to shrink
by up to 2.5% in the fi rst
quarter, compared to early
2019. Beyond that, the air-
line isn’t sure because it all
depends on when the Max
returns.
Max operators say they
are still confi dent in the
plane, which they bought
with its promise of better
fuel economy and larger size
than previous versions of the
venerable Boeing 737, which
has a good safety record.
“We know it will fl y again
some day,” American Air-
lines CEO Doug Parker said
of the Max. “When it does,
we’ll be ready.”
The comments, which
echoed those by United Air-
lines executives the day
before, came as Ameri-
can and Southwest reported
fourth-quarter profi ts.
Both American and
Southwest have reached set-
tlements with Boeing over
Mike Stewart/AP Photo
Southwest pilots prepare for a fl ight at Tampa International Airport in Florida.
damages they suffered from
the loss of their Max jets
during 2019. They will con-
tinue negotiating as the
fi nancial impact lingers long
into 2020.
The Max has been
grounded since last March
after two crashes killed 346
people. Boeing, which is
working on fi xes to software
and other items, said this
week that it doesn’t expect
federal safety regulators to
clear the plane to fl y until
June.
Southwest
executives
said even after the plane
is re-certifi ed by the Fed-
eral Aviation Administra-
tion, they will need three or
four more months to update
operating manuals, get moth-
balled planes ready to fl y,
and train pilots in Max fl ight
simulators.
That would push the
plane’s return into the fall.
Southwest, American and
United have all removed
the Max from their sched-
ules into June but are certain
to push back their schedules
again after Boeing’s latest
announcement.
Those airlines face a limit
on growth and are keep-
ing a few older planes fl y-
ing instead of retiring them.
Meanwhile, rival Delta Air
Lines, which never bought
any Max jets, continues to
grow.
Analysts said demand for
travel remains healthy, driv-
ing a closely watched mea-
sure of revenue per seat
higher.
American
reported
record-high occupancy lev-
els on its planes, which
helped push earnings up 27%
to $414 million. The results
were slightly better than
expected, with adjusted earn-
ings of $1.15 per share being
a penny higher than a FactSet
survey of 18 analysts.
Revenue rose more than
3% to $11.31 billion, match-
ing the analysts’ average
forecast.
The Fort Worth, Texas,
airline said 2020 adjusted
earnings, excluding non-re-
peating items, will be
between $4 and $6 per share.
That is in line with Wall
Street expectations of $5.06
per share.
Cowen analyst Hel-
ane Becker said American’s
2020 forecast was proba-
bly conservative because of
uncertainty around the Max
and the economy.
Southwest’s profi t slipped
21% to $514 million, partly
due to higher costs and
lost revenue from the Max
grounding.
Analysts were looking for
earnings of $1.09 per share,
according to FactSet. South-
west delivered 98 cents per
share, but that included a loss
of 18 cents per share related
to the Max. Revenue was
$5.73 billion, slightly better
than analysts predicted.
JetBlue, which didn’t buy
the Max, said Thursday that
fourth-quarter profi t fell 5%
to $161 million or 56 cents
per share, beating the ana-
lysts’ forecast of 19 cents per
share. The airline gave signs
that it is getting long-rising
costs under control, and it
estimated 2020 earnings of
$2.50 to $3 a share, above
Wall Street’s $2.38 forecast.
Looking for love online
Dear Annie: I’m 29 and to gauge your chemistry,
single. I’m proud to have and it prevents you from
worked my butt off since endlessly instant mes-
college and am now seeing saging with a guy whom
the fruits of my labor. I’ve you’ll never end up meet-
got the dream job that I’m ing. After all, if he can’t be
passionate about, am mak- bothered to hop on a quick
ing good money and have phone call with you, don’t
bother with him.
the most amaz-
Be upfront about
ing group of loved
DEAR
what you’re look-
ones and mentors.
ANNIE
ing for: a relation-
The cherry on top
ship, not a hookup.
of it all would be
If he’s intimidated
a man I can enjoy
by your directness,
all of this with.
has different priori-
Since I have a hec-
ties or thinks that’s
tic schedule and
“too much,” then
travel for work,
I fi gured getting ANNIE LANE why would you
Creators
want to date him
back into online
Syndicate Inc.
anyway?
dating (in addition
And lastly, a
to good “old-fash-
ioned” meeting people) note to anyone dipping his
would offer some solid or her toe in the online-dat-
ROI. It’s been more bag- ing waters, remember to
gage than not, though, and always opt for a public
I don’t know how to make meeting place and let a
it work or whether I should friend know where you’ll
be.
just skip it altogether.
Dear Annie: You have
“Adam” and I had deli-
cious witty banter over text published many letters
for a week and a half. By from people bemoaning
his pictures, he was the the fact that gifts that they
perfect combination of gave were not acknowl-
sexy and cute. When we edged. While I am fully in
fi nally met, I knew pretty agreement that a “thank-
quickly there wasn’t a you” is a must for any gift I
long-term
connection. receive, I do not agree that
“Jeff” and I talked inces- anyone has an obligation to
santly for about a week, send a gift in the fi rst place,
as voiced by the recent let-
and then he ghosted.
I don’t expect the fi rst ter from “Unappreciated
— or even the 10th — guy I Giver” who seems to be
match with to be “the one.” putting herself on a guilt
I’m willing to try them trip if she does not give.
I am a few months short
on till one fi ts just right,
but I can’t stand my time of 80 years old; I have
and energy being wasted! enough “stuff” around.
What’s your advice on The holidays were a per-
how to get quality expe- fect time to remember to
riences out of online dat- make contact with friends
ing? — Frustrated With and relatives that are at a
distance, which I did with
Swiping
Dear Frustrated: If a Christmas letter, a phone
the internet widened the call or an email. I look for-
dating pool, it also mud- ward to and enjoy similar
died the waters. The best contacts; they are the best
approach in such environs gift that I receive — save,
is a streamlined one: If you of course, for the yearly
think you have a connec- photo of the grade-school
tion with someone you’ve grandkids that comes in
matched with online, the Christmas card from
invite him for a phone call my kids (and the small box
to see if you two hit it off of cookies from my daugh-
before scheduling a date. ter-in-law). — Bill, The
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