Afternoon Coffee: Southwest, American hurt by 737 MAX grounding; Caterpillar pays $70 million in tariffs; Europe heat wave

The grounding of the Boeing 737 MAX airplanes is having more fallout.

Southwest Airlines said it will pull out of Newark’s airport in November, is expecting higher costs associated with delays caused by the grounding, and will delay any return of the MAX to its schedule until Jan. 5 next year, CNBC reports.

American Airlines said it expects the grounding to cut 2019 pretax earnings by $400 million, the Associated Press reports.

The AP states, “Boeing expects the Federal Aviation Administration to clear the plane to resume flying in October after Boeing finishes changes to flight-control software implicated in two crashes that killed 346 people.”

American took the 737 MAX off its schedule until Nov. 2, the AP reports.

Caterpillar pays tariffs, raises prices

Caterpillar said the heavy-vehicle manufacturer paid $70 million in tariffs last quarter, and that it expects tariffs to cost as much as $350 million for the year, Supply Chain Dive reports. Caterpillar said it raised prices to deal with the tariffs.

Heat covers Europe, closes rails in England

Record temperatures are being set across Europe, where it’s been 100-plus degrees Fahrenheit, the AP reports. The heat is taxing people in countries that don’t have a lot of air conditioning, and in England, rail service was widely postponed by the heat, the AP said.