American Airlines expects a USD350 million hit from B737 Max grounding
American airlines is bracing for a $350 million hit to pre-tax earnings due to the Boeing 737 MAX grounding.
The airline has 24 Boeing 737 MAX 8s and canceled 1,200 flights in the first quarter due the grounding.
It has another 76 of the aircraft on order with Boeing.
A further 115 flights a day have been removed from its flight schedules until at least mid-August.
"These flights represent approximately 2% of American’s total capacity each day this summer," the carrier said.
"Although these aircraft represent a small portion of the company’s total fleet, its financial impact is disproportionate as most of the revenue from the cancellations is lost while the vast majority of the costs remain in place."
A date for the Max to resume flying is still up in the air but could just be a few weeks away
AA posted a first quarter pre-tax profit of $245 million.
Southwest Airlines canceled more than 10,000 flights in the first quarter, partly due to the ground of its fleet of Boeing 737 Max jets.
The cancelations have cost about $150 million so far.
Its Max fleet represents less than 5% of all daily flights, Southwest CEO Gary Kelly said.
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