CALGARY — WestJet Airlines is suspending its 2019 monetary guidance following the grounding of its 13 Boeing 737 Max eight aircraft by regulators in Canada and the United States due to security issues.
The Calgary-primarily based airline says its monetary outlook offered as late as a month ago are becoming place on hold except for earnings per share, return on invested capital and cumulative no cost money flow amongst 2020 and 2022 till much more details is known.
The move follows a related selection final week by Air Canada, which operates 24 of the narrowbody aircraft.
WestJet says it grounded all Max aircraft inside 55 minutes of Transport Canada’s order final Friday, with only 3 planes outdoors of Canada. The action was taken just 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, such as 18 Canadians.
The airline says via its contingency program it expects to preserve about 86 per cent of passengers bookings on Max flights and obtain option planes for about 75 per cent of Max flights.
Walter Spracklin of RBC Capital Markets described the challenge as a short-term concern for each airlines.
“Overall, we see the influence as restricted and quick-term,” he wrote in a study note.
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The Canadian Press