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Boeing Will Compensate Southwest Air Employees For 737 MAX Groundings

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Boeing Will Compensate Southwest Air Employees For 737 MAX Groundings

Southwest Airlines Co. (NYSE: LUV) on Thursday reached a confidential agreement with Boeing (NYSE: BA) to compensate Southwest for projected financial damages related to the grounding of the airline's Boeing 737 MAX aircraft. It's estimated the profit sharing accrual will be $125 million.

The Boeing 737 MAX fleet has been grounded since the Federal Aviation Administration's order was issued on March 13.

Southwest Airlines says it continues to monitor information from Boeing and the FAA on the impending 737 MAX software enhancements and training requirements.

See Also: Boeing Is Redesigning 7,000 Planes. It's Not What You Think.

"Our People have done an incredible job managing through the MAX groundings, while providing the highest levels of customer service and one of the best operational performances in our history,” Gary Kelly, CEO of Southwest said in a statement. “On behalf of the Southwest board of directors, we are grateful to our Employees for their extraordinary efforts throughout the year and are pleased to share proceeds from our recent agreement with Boeing."

Boeing shares were trading down by 0.017% at $349.94 in Thursday’s pre-market session. The stock has a 52-week high of $446.01 and a 52-week low of $292.47.

Southwest Airlines shares were trading up 0.93%% at $54.50. The stock has a 52-week high of $58.77 and a 52-week low of $44.28

Photo by Steve Lynes via Wikimedia

Posted-In: 737 MAXNews Legal Best of Benzinga

 

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