This is How Boeing’s 737 Max is Affecting Southwest Airlines

Southwest Airlines has cut its first quarter revenue growth outlook this week to be no more than 3% from up to 4%.

According to the airline, the company has lost $150 million in revenue from the 737 Max groundings, soft demand and maintenance issues.

Southwest said that it expects its revenue per available seat mile, to grow 2 to 3 percent compared with an earlier forecast of as much as 4 percent.

It was in early March that Boeing’s 737 Ma plans had been grounded by the Federal Aviation Administration after two fatal crashes in the last several months.

Southwest said it expects to lose $150 million in revenue in the first quarter of 2019, up from a February estimate of $60 million, due to weather-related cancellations, maintenance issues, weak leisure-travel demand and the Max groundings.

Earlier this week American Airlines also had a disappointing announcement saying it had plans to cancel around 90 flights a day through April 24 due to the Max grounding.

“Due to the current uncertainty regarding the duration of the Max groundings and any requirements for reinstatement of the aircraft into service, it is difficult for the company to forecast the impact of the MAX groundings beyond first quarter 2019,” Southwest said.

The company will be reporting its first-quarter earnings in late April.

Disclaimer: We have no position in Boeing Co. (NYSE: BA) nor Southwest Airlines Co. (NYSE: LUV) and have not been compensated for this article.