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Boeing 737 Max grounding hits American Airlines outlook

Boeing 737 Max grounding hits American Airlines outlook

Boeing suspended deliveries in mid-March, and last week, announced that it would cut production of the 737 from 52 a month to 42 following the accident involving Ethiopian 737 Max.

The groundings forced Boeing to freeze deliveries of the MAX, which had been its fastest-selling jetliner until a March 10 crash on Ethiopian Airlines that killed all 157 onboard, just five months after a similar crash on Lion Air that killed all 189 passengers and crew.

It's the latest complaint in a growing number of claims against Boeing following two 737 Max crashes within six months. Boeing hasn't disclosed any lost orders, although Garuda Indonesia has said it will cancel an order for 49 Max jets.

In the first quarter of past year, Boeing took 122 orders for 737s, including 112 for the Max, led by large orders from Southwest Airlines and Ireland's Ryanair.

Since the Boeing 737 Max 8 was grounded in the United States on 13 March, American Airlines has cut 1,200 flights and has extended cancellations through its second quarter to 30 June, which will affect about 90 flights a day. In all, 346 people died.

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Delta Air Lines neither owns nor has any orders for the Max - most of its pending orders are with Boeing's rival, Airbus.

The company is still working on the software update, which was delayed recently by several weeks because of the discovery of a second software problem.

As a result, American said it now expects here revenue per available seat mile, a closely followed measure of performance, to be flat to up 1 percent compared with the prior forecast of flat to 2 percent growth.

Boeing's shares were down 1.4 per cent at $369.50 in afternoon trading.

American Airlines also said that it was unable to forecast how much the disruption would cost the company.