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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Language course helps to revitalize Okanagan First Nation language

“Learning a Language: nsyilxcən for Everyone” course kicks off in Kelowna on Feb. 4

Peachland looks to hire climate action coordinator

Coordinator would help city reach its carbon reduction goals

Flooding water at West Kelowna Tim Hortons closes lane on Highway 97

This story has been updated with more accurate information. Water flooding from… Continue reading

Okanagan team leads animal rescue efforts in Australia

Brad Pattison’s team arrived in Sydney on Monday

Pedestrian struck in front of West Kelowna Walmart

Paramedics and emergency crews responded to the call around 1:30 p.m. Friday

VIDEO: Mass coronavirus quarantines seen in China won’t happen in Canada, authorities say

‘If a case comes here, and it is probably … it will still be business as normal’

Province’s oldest practising lawyer shares advice at her 100th birthday party

Firefighters bring Constance Isherwood a cake with 100 birthday candles

Vernon woman suing McDonald’s for spilled coffee

Woman seeking nearly $10K, says employee failed to put lid on properly

Diners’ health tax not catching on in B.C., restaurant group says

Small businesses look for options to cover employer health tax

Avalanche danger closes Highway 1 near Chase

The highway is closed in both directions east of Chase

B.C. comic wins judgment after club owner slaps cellphone out of his hands

Incident happened last summer when Garrett Clark was performing in Abbotsford

Melted snow uncovers problematic potholes in Vernon

Temperature swings, precipitation behind cracked pavement, city says

Alumni trumpet band strikes emotional chord for Vernon girls

Vernon Girls Trumpet Band will be tooting their horn for the 60th Winter Carnival parade

Mayors call for ‘calmness’ as highway rockslide cuts Tofino, Ucluelet off from supplies

Ministry of transportation expects to open road for “essential travel only” from noon-8 p.m. Friday.

Most Read