Southwest Airlines Boeing 737 MAX aircraft are parked on the tarmac after being grounded, at the Southern California Logistics Airport in Victorville, California on March 28, 2019.

Southwest Airlines on Thursday said it won't fly the grounded Boeing 737 Max until next year, warned about higher-than-expected costs and announced it's pulling out of Newark Liberty International Airport this November as the grounding of the new jets drags on longer than expected.

Southwest dropped the Max from its schedules until Jan. 5, later than any U.S. airline, a move that means the low-cost carrier — and passengers — will face canceled flights and potentially higher fares during the busy end-of-year holiday travel period. The Dallas-based carrier expects its capacity this year to fall 1% to 2% in 2019 from last year, down from a forecast of a 5% expansion.

Southwest's measures and outlook show how airlines' struggle with repeated delays to the planes' return to service is getting worse, crimping their growth at a time of strong demand for air travel.

American Airlines said it took a $175 million-hit to pretax income in the second quarter because of the thousands of cancellations it was forced to make in the second quarter with the planes out of service. The extensive grounding will hit American's pretax earnings by $400 million this year, the airline estimated, up from its April forecast of a $350 million reduction. American still beat profit estimates, thanks to strong travel demand.

Regulators worldwide grounded the Boeing 737 Max in mid-March after two fatal crashes and have not said when they will allow the jets to fly again. Southwest has more Maxes than any other U.S. airline — 34 of its 750 planes at the time of the grounding, now in its fifth month. Southwest is Boeing's biggest customer with an all-Boeing 737 fleet and ordered the new, more fuel-efficient Max planes, touting their cost savings.