Southwest CEO sees Boeing's 737 MAX grounded longer than expected, stock slammed

Boeing's Max Jet crisis suffered another setback.

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TickerSecurityLastChangeChange %
BABOEING COMPANY371.68+4.24+1.15%
LUVSOUTHWEST AIRLINES CO.57.79+0.16+0.28%

Shares of the Dow member fell over 2 percent on Monday as the broader market rallied after Southwest Airlines said it will now likely remove the beleaguered 737 MAX jets from its flying schedule beyond Oct 1st. The discount airline was already taking about 150 flights out of the peak day schedule.

FOX Business confirmed that Southwest CEO Gary Kelly told employees Monday "being proactive like this helps us reduce the last-minute cancellations and allows us to rebook our Customers well in advance, so that’s important that we continue to stay ahead of this."

The latest pushback comes following additional Boeing 737 MAX software issues uncovered last week. The fleet was grounded worldwide in March following two deadly crashes within five months.

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The other two U.S airlines flying the 737 Max, American Airlines Group and United Airlines Holdings, pulled the jetliner from their flying schedules until early September.

TickerSecurityLastChangeChange %
AALAMERICAN AIRLINES GROUP INC.28.86+0.09+0.31%
UALUNITED AIRLINES HLDG.92.51-0.01-0.01%

Later this month, the three airlines are expected to disclose what the grounding is costing them financially.

FOX Business's Joe Williams contributed to this report.