Southwest Airlines is pulling out its operations at Neward Liberty International Airport due to losses brought by the grounding of the Boeing 737 Max. After the two deadly crashes of Lion Air and Ethiopian Air involving the 737 Max aircraft, the aircraft has been grounded globally. This is now taking a huge toll on airlines operating them, with some cancelling orders of the Max.
During the second quarter, Southwest had lost an estimated $175 million while operating costs have increased. Southwest operates an all-Boeing 737 fleet with 754 aircraft. 34 of them are Boeing 737 Max 8 aircraft. The airline also has a pending order of 246 737 Max 8 and 30 737 Max 7 aircraft.
Southwest heavily relies on the 737 Max for its operations as they would be replacing their present fleet of 737-700 and 737-800. The airline had expected to take delivery of 44 of the planes this year but only 34 were delivered. Boeing stopped delivering the 737 Max pending the go-signal from the FAA and aviation regulators that it is deemed fit to fly again.
It is said that Southwest is now looking into the Airbus A220.