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

Handmade for Hope proposal at Orca Place denied by council

Motion carried to allow use of the former temporary shelter space as exercise room instead

Ballenas Whalers advance to junior varsity Subway Bowl title game

Parksville squad will play for provincial high school football crown

BCHL: Alberni Valley Bulldogs drop a close game in Parksville

Spruce Kings come back from a 3-0 deficit to win 4-3

Language showcase at Qualicum Beach Museum

2019 is the year of Indigenous languages

VIDEO: ‘Climate emergency’ is Oxford’s 2019 Word of the Year

Other words on the shortlist included ‘extinction,’ ‘climate denial’ and ‘eco-anxiety’

Canucks erupt with 5 power-play goals in win over Nashville

Vancouver ends three-game slide with 6-3 triumph over Predators

Nanaimo man caught with more than 200,000 child porn images to be sentenced

Crown says Aaron Macrae recorded video of children on buses and at his workplace

Vancouver Island hunters may have harvested deer in area known for chronic wasting disease

Conservation officers make urgent request to public for any information

65-million-year-old triceratops makes its debut in Victoria

Dino Lab Inc. is excavating the fossilized remains of a 65-million-year-old dinosaur

B.C. widow suing health authority after ‘untreatable’ superbug killed her husband

New Public Agency Health report puts Canadian death toll at 5,400 in 2018

Changes to B.C. building code address secondary suites, energy efficiency

Housing Minister Selina Robinson says the changes will help create more affordable housing

Security guard at Kamloops music festival gets three years for sexually assaulting concertgoer

Shawn Christopher Gray walked the woman home after she became seperated from her friends, court heard

Most Read