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Max 737 grounding impacts Southwest Airlines

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Max 737 grounding impacts Southwest Airlines

Southwest Airlines has cited the grounding of Boeing's 737 Max jets as a key factor in the airline seeing reduced operarating income for the second quarter of 2019.

The airline says the grounding cost $175 million, and is talking to Boeing about compensation regarding the non-use of its 737 Max fleet.

Southwest also revealed that it doesn't expect to use any 737 Max jets, which makes up 5% of its fleet, until January.

The airline also said that the grounding means itwill have to shut down operations at Newark Liberty International Airport in November and consolidate the service at New York's LaGuardia Airport.

The airline's second-quarter profit rose just 1% from a year ago, to $741 million - impacted by the 737 grounding.

Chairman and CEO Gary Kelly said in a statement: "We have had preliminary discussions with Boeing regarding compensation for damages due to the Max groundings.

"We have not reached any conclusions regarding these matters, and no amounts from Boeing have been included in our second quarter results."

Boeing is continuing to work on fixing the 737's flight-control software. It expects the aircraft to be in the air around October.

The second-quarter profit was $8 million higher than a year ago, with revenue coming in at $5.9 billion.