Southwest revenue rises despite $210 million hit from Boeing 737 Max grounding - CNBC

Southwest Airlines Boeing 737 MAX aircraft are parked on the tarmac after being grounded, at the Southern California Logistics Airport in Victorville, California on March 28, 2019.

Mark Ralston | AFP | Getty Images

Southwest Airlines on Thursday reported slightly higher third-quarter revenues compared with the same period last year, but warned the financial hit from the Boeing 737 Max grounding would "grow" into 2020.

The airline is the largest operator of the 737 Max and it had 34 of them in its fleet at the time of the worldwide grounding in mid-March, in the wake of two fatal crashes.

The low-cost carrier said the flight ban, the largest ever, cost it $210 million in revenue in the quarter, but sales still rose just over 1% to $5.64 billion, in line with analyst estimates. Southwest posted adjusted earnings per share of $1.23, above analysts' expectations of $1.08 a share.

Southwest said the grounding cost it $435 million in revenue in the first nine months of the year. The airline added that it expects "the damages to grow into 2020." 

Shares were little changed in premarket trading.

The airline removed the plane from its schedules through Feb. 8, later than any U.S. airline.

This is breaking news. Check back for updates.

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Southwest revenue rises despite $210 million hit from Boeing 737 Max grounding - CNBC
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