American Airlines to take $350-million hit from 737 Max groundings GlobeBusiness
American Airlines' Boeing 737s taxi on the runway at San Francisco International Airport on April 24, 2019 in San Francisco, Calif.American Airlines Group Inc. cut its 2019 profit forecast on Friday, saying it expected to take a $350-million hit from the grounding of Boeing’s 737 Max planes after cancelling 1,200 flights in the first quarter.
The No. 1 U.S. airline by passenger traffic said it now expects its 2019 adjusted profit to be between $4.00 per share and $6.00 per share, from a previous forecast of between $5.50 per share and $7.50 per share.Analysts on average had expected 2019 earnings of $5.63 per share, according to Refinitiv data.
The worldwide grounding of Boeing Co’s fuel-efficient, single-aisle workhorse after two fatal crashes is biting into U.S. airlines’ busy spring and summer schedules, forcing hundreds of daily cancellations. The company said net income rose to $185-million, or 41 cents per share, in the first quarter ended March 31, from $159-million, or 34 cents per share, a year earlier.
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