Boeing's 737 Max could make this an expensive holiday travel season
FBN's Grady Trimble on the impact of the Boeing 737 Max grounding on the airline industry.
The upcoming holiday travel season could be a costly one.
The reason? The grounding of the Boeing 737 Max aircraft, according to MarketWatch.
Issues with the aircraft’s software likely contributed to the crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302, which resulted in the deaths of 346 people.
Carriers had to take that airliner out of service and may not get government approval to put it back on schedules until 2020.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 137.49 | -2.48 | -1.77% |
| AAL | AMERICAN AIRLINES GROUP INC. | 14.44 | +0.42 | +3.03% |
| LUV | SOUTHWEST AIRLINES CO. | 32.41 | +0.01 | +0.05% |
| DAL | DELTA AIR LINES INC. | 65.05 | +0.57 | +0.88% |
That has forced airlines to re-book passengers on other flights and cancel others all together.
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The grounding has led to Delta Air Lines pilots receiving record overtime, even though the carrier doesn't fly the Max, according to a Reuters report.
It has also strained the airline's labor costs, in part because more flights are needed to be added.
Prices could go up especially for flights to or from cities that are hubs for Southwest and American Airlines.Those two airlines had more of the 737 MAX in their fleet than other domestic airlines.
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Travel agencies recommend booking early and be flexible.