American extends grounding until Jan 2020; puts pressure on finances for Q4 2019

American Airlines has updated its third-quarter 2019 guidance including its margins for the 737 MAX, which is slightly higher due to lower fuel costs. The company reiterated the midpoint of unit revenue despite minor headwinds and as expected, the MAX is out of the schedule until at least 15 January. Helane Becker of analysts Cowen and Co believes that this will put modest incremental pressure on fourth quarter 2019 non-fuel unit costs but will allow for level setting of 4Q19 estimates ahead of earnings. “American’s 3Q19 guidance update was in line with our expectations,” Becker wrote in the update. “With third-quarter