Boeing Fleet Grounding Contributes to Mass Expedia Layoffs

Alaska Airlines Grounds All 65 of Its Boeing 737 Max-9 Planes
Written by Linda Hohnholz

Travel bookings have dramatically slowed ever since the Boeing 737 Max 9 fleet was grounded, resulting in all kinds of travel repercussions from the CEO of Expedia stepping down to 1,500 jobs being slashed for the online travel booking company.

After a door blew off a Boeing 737 Max 9 aircraft shortly after takeoff, the traveling public put the brakes on their plans to go airborne. This aircraft represents a huge proportion of airline fleet and has caused the cancellation of thousands of flights. As an example, United Airlines and Alaska Airlines both have fleets which are comprised of 70% of the grounded aircraft. That is more than a major dent in the airlines’ fleets.

The company said it is transforming in the organizational and technological sense, stating it “continues to evaluate the appropriate allocation of resources to ensure the most important work continues to be prioritized.”

According to the company, these cuts are going to cost Expedia up to $100 million in severance and compensation benefits costs. At the same time, the company had the funds necessary to complete the purchase of several major online travel booking platforms to add to their umbrella including Travelocity, Orbitz,, Vrbo, and

It always comes down to the bottom line which cites below expected revenue based on analytical predictions and as airline ticket prices also begin to drop to attempt to compensate for the waning demand for travel.

Expedia currently employs around 17,100 people, of which 9% of them will soon lose their jobs, including the current Chief Executive Officer Peter Kern who is being replaced in May when his contract ends by Ariane Gorin, the current President of Expedia for Business unit.

The Boeing 737 Max 8 has a history of plagued flying including 2 aircraft that crashed in 2018 and 2019 that killed 346 people due to a faulty automated flight-control system. At that time, the aircraft was grounded for 20 months.

WTNJOIN | eTurboNews | eTN

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About the author

Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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