American Airlines Took $185 Mln Hit From Boeing 737 Max Jet Grounding In Q2

(RTTNews) - American Airlines (AAL) has warned that its second-quarter profit took a $185 million hit, hurt by the extended grounding of the Boeing 737 Max jets.

American Airlines, which is the biggest airline in the U.S., owns 24 Boeing 737 Max Jets, the second-largest fleet in the country. American Airlines said around 7,800 flights had to be canceled in the second quarter. Dallas-based Southwest Airlines Co. (LUV) owns the biggest 737 Max fleet of 34 in the US.

Federal Aviation Administration grounded 737 Max jets in March after the jet crashed twice in five months, killing 346 people on board.

Last month, American Airlines extended cancellations for Boeing 737 MAX through September 3. However, industry experts expect the delay to last much longer. In total, approximately 115 flights per day will be canceled through September 3. In April, American had extended cancellations for the MAX through August 19.

Meanwhile, American Airlines raised other key estimates. The company expects unit revenue, which compares sales to flight capacity, to grow 3% to 4% in second quarter, up from its prior forecast for 1% to 3%. American Air also raised its pre-tax margin guidance to 8.5% to 9.5% from 7% to 9%.