Seventy flights from Southwest Airlines Co. were canceled on Monday as the inspection of Boeing 737 planes continued. The action was implemented after a Southwest plane with a hole in its fuselage had an emergency landing on Friday.

Southwest’s Flight 812 was supposed to head to Sacramento from Phoenix when a 5-foot long tear opened its fuselage about 20 minutes after it had taken off the airport. Southwest only runs Boeing 737 planes.

Whitney Eichinger, spokeswoman of Southwest Airlines, said seventy flights out of around 3,400 daily flights were canceled on Monday. She said out of seventy-nine older models of Boeing 737-300 that were inspected after the incident last Friday, thirty-three of them had been conferred back to service.

Over the weekend, Southwest Airlines canceled about 600 flights as it inspected 737-300 planes for cracks in fuselage and fatigue. The discount airline said there were cracks found in two other planes.

The Boeing Company has no immediate reply on Monday. According to aviation officials, the aircraft manufacturer is expected to render service bulletin to 737-300 operators all over the world to inspect the planes affected, particularly those of heavy use. Currently, there are about 280 Boeing 737-300s in the United States and a total of 900 around the world.

Analyst James Higgins of Soleil Securities said the cancellations of the Southwest flights might cause the company some revenue loss, However, he doesn’t think the effects of the incident will last.

On Monday morning trading, Southwest’s shares dropped 2.6 percent at $12.34. Meanwhile, shares of Boeing dropped 0.2 percent at $73.84.

The Boeing Company had finalized their $5.3 billion agreement with the U.S Navy to create 124 F/A-18 fighter jets, as well as electronic attack planes. The deal extends for four years, which is expected to make over $600 million savings.

Boeing and the Pentagon announced the deal on Tuesday, which requires the Boeing Company to deliver 66 F/A-18 “Super Hornet” fighters and 58 EA-18G airframes that are intended for electronic attacks to the U.S Navy from year 2012 to 2015.

According to the Pentagon, the multiyear deal was based on a fixed-price terms with additional incentive fees. Since it is a fixed-price term, the government will not be charged with extra fee if there are any cost overruns.

Boeing also made a $249 million contract for their F/A-18 fighters to have logistics support. These F/A 18 fighter jets operate worldwide including the progressing missions in Afghanistan.

Since the agreement will run for four years, this will save them more than $600 million in costs, for they would be able to buy the materials in bulk and allow their suppliers to plan ahead of time. This will make the production more efficient as opposed to a single-year contract.

The agreement is based on a $42.7 million price per plane, but the engine and other government-furnished equipment is not included in the price.

Boeing is the largest aircraft manufacturer around the world and this contract is the third multiyear agreement that Boeing Company has signed with the U.S Navy for their F/A-18 fighter jets.