American expects $185 million hit due to 737 Max grounding

Darren Wood
By Darren Wood July 11, 2019 10:29

American expects $185 million hit due to 737 Max grounding

Ahead of its Q2 2019 financial results, American Airlines is expecting a negative impact of $185 million due to cancellation of Boeing 737 Max flights.

The carrier has cancelled 7,800 flights during the period and has increased the grounding of its 737 Max fleet through 3 September.

American expects to report a 3% to 4% revenue per available seat mile (RASM) gain for the second quarter, exceeding previous guidance of 1 to 3%.

American operated 72.3 billion available seat miles (ASMs) during the second-quarter of 2019, down 1.1 billion than previously guided.

In April, American said it would cost the airline $350 million in pre-tax revenue this year.

American has 24 of the planes in its fleet of more than 900 aircraft and has another 76 on order.

Darren Wood
By Darren Wood July 11, 2019 10:29