Luckily, despite being one of the biggest USA 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.
Boeing acknowledged that the sensor malfunctioned and Muilenburg said last week that a new software update would prevent future incidents. It is not clear how long this process will take. Accordingly, it looks like it might be several more weeks until American Airlines and other operators of the aircraft will be able to fly their Boeing 737 MAXs.
Deliveries of Boeing's best-selling aircraft were frozen after a global grounding of the narrowbody model following the crash of an Ethiopian Airlines jet on March 10, killing all 157 people onboard. That means airlines could be forced to park their Max jets longer than they expected.
The decision comes after the crash of a 737 MAX 8 in Indonesia and another in Ethiopia.
The company said that starting in mid-April it will cut production of the plane to 42 from 52 per month so it can focus its attention on fixing the flight-control software that has been implicated in the crashes.
"We are taking proactive, measured steps to invest in the health of our production system and supply chain, best positioning us for the future", Boeing CEO Dennis Muilenburg said in a statement Friday.
Not affected are American's 304 737-800 aircraft. There are 16 seats in First Class, 30 seats in Main Cabin Extra, and 126 seats in the Main Cabin.
Boeing (BA) lost another bullish backer today.
It's our responsibility to eliminate this risk.
"We would estimate the MAX program at over $4 million per ship-set for United Technologies", Wolfe analyst Nigel Coe wrote in a note.
Boeing said it would not comment on the lawsuit directly and extended its "heartfelt condolences and sympathies to the families and loved ones of those onboard Ethiopian Airlines Flight 302". The Dreamliners were grounded due to an issue with batteries catching on fire. He had previously forecast three to six months of disruption.
Fifty Dreamliners were grounded in January of 2013.
Sources have told ABC News the Lion Air Boeing 737 Max 8 also struggled to maintain a steady flight path and the MCAS was activated before the jet crashed into the Java Sea off the coast of Indonesia on October 29, 2018.
S&P warned that deliveries in some markets could be delayed after regulators in the EU, Canada, China and elsewhere said they would review Boeing's fixes before allowing the planes to resume normal operations.