The low-cost carrier warned investors in March that its first-quarter profit would be hit by the plane's grounding.
a major US operator of the now-grounded 737 max planes, was hit with a stock downgrade by analysts at Raymond James.
The Wall Street firm slashed its rating for shares of the low cost carrier to market perform from outperform on Monday, saying that the grounding of 737 Max planes could make it harder for Southwest to retire its fleet of 737-700s as planned.
Luckily, despite being one of the biggest US operators of the 737 Max, the model makes up relatively few of Southwest's revenue seat miles, a closely watched metric for airline investors, Syth says. Still, this quarter's earnings are likely to take a hit due to the grounding, asTherefore,"we are downgrading LUV from Outperform to Market Perform due to near term earnings risk related to the grounding of the MAX fleet, which we now believe may run into the summer months.
American, for its part, also believes the grounding may last that long, and canceled flights on the affected plane through at least June 5 on Monday.
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