A pilot taxis a Westjet Boeing 737-700 plane to a gate after arriving at Vancouver International Airport on February 3, 2014. The union that represents pilots at WestJet has called for a strike vote to press its demand for a contract. THE CANADIAN PRESS/Darryl Dyck

WestJet suspends 2019 financial guidance after Boeing 737 Max grounded

The company has 13 Boeing 737 Max 8 aircraft grounded by regulators after the Ethiopian crash

WestJet Airlines is suspending its 2019 financial guidance following the grounding of its 13 Boeing 737 Max 8 aircraft by regulators in Canada and the United States due to safety concerns.

The Calgary-based airline says its financial outlook provided as late as a month ago are being put on hold except for earnings per share, return on invested capital and cumulative free cash flow between 2020 and 2022 until more information is known.

The move follows a similar decision last week by Air Canada, which operates 24 of the narrowbody aircraft.

WestJet says it grounded all Max aircraft within 55 minutes of Transport Canada’s order last Friday, with only three planes outside of Canada. The action was taken after aviation authorities across the globe grounded the aircraft in the wake of the Ethiopian Airlines crash March 10 that killed 157 aboard the plane, including 18 Canadians.

The airline says through its contingency plan it expects to preserve about 86 per cent of passengers bookings on Max flights and find alternative planes for about 75 per cent of Max flights.

Walter Spracklin of RBC Capital Markets described the challenge as a temporary issue for both airlines.

“Overall, we see the impact as limited and short-term,” he wrote in a research note.

READ MORE: Airlines shift planes to get March Break travellers home amid Max 8 grounding

The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

RDCK asks province for more powers to regulate private land logging

‘If the province won’t step up, we will have to’

Women, children escaping domestic violence have few options in Nelson

The 11th annual Report Card on Homelessness shows a need for women’s housing

L.V. Rogers awards its top athletes

The high school honoured its athletes last week

Logging protester arrested near Balfour

Jessica Ogden remains in custody until a hearing date is set

VIDEO: Tributes flow on 10th anniversary of Michael Jackson’s death

Jackson received a fatal dose of the anesthetic propofol on June 25, 2009. He died at age 50

VIDEO: Killer whale steals fisherman’s catch off North Coast

Fishing duel results in eager orca snagging salmon in Prince Rupert

40 cats surrendered in apparent hoarding at B.C. home

Officers found the cats living among piles of garbage and feces, suffering from fleas

Tsilhqot’in Nation urges Taseko Mines to stop drilling plans before conflict grows

Nation said Teztan Biny area is of ‘profound cultural and spiritual importance’

Vancouver Aquarium drops cetacean ban lawsuit in new lease agreement

Ocean Wise CEO Lasse Gustavsson called the updated lease an exciting new chapter for the aquarium

Thieves steal two $40K chairs featuring gold serpents from B.C. furniture store

Chairs believed to be the only two of its kind in Canada, police said

Rising gas prices force B.C. residents to rethink summer road trips: poll

63 per cent of respondents reported gas prices are impacting their day-to-day finances

PHOTO: Moose cow and calf relax in Williams Lake flower garden

The homeowners got a surprise when they checked their most recent surveillance footage

Two in hospital after plane crashes in Okanagan Lake

RCMP say wheels left down caused landing plane to overturn on lake

Most Read