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- American Airlines has extended its cancellation of Boeing 737 Max flights through June 5.
- The carrier operates about 90 flights on the grounded plane per day, it said in a press release.
- Wall Street analysts are warning Boeing’s crisis could not only bring down the stock, but the entire US economy, too.
The fallout from Boeing’s worst crisis in years still has no end in sight for airlines that operate the embattled 737 Max jet.
American Airlines, which operates 24 planes of the planes, said Sunday that it will cancel all flights on the model, or roughly 90 per day, through at least June 5.
"In an effort to provide more certainty and avoid last minute flight disruptions, American has extended cancellations through June 5," the company said in a press release. "This will result in the cancellation of approximately 90 flights each day based on our current schedule. By proactively canceling these flights, we are able to provide better service to our customers with availability and rebooking options."
Shares of the airline were down about 1% in pre-market trading Monday following the update.
Read more: Boeing’s 737 Max crisis could drag down the entire US economy, Wall Street analysts are warning
In March, American saw the first impact of the plane’s grounding on its service, and canceled the 90 daily flights through April 24.
Some Wall Street analysts have warned that the potential impact to Boeing’s revenue as it cuts production of the plane, as well as slightly fewer revenue-generating flight by airlines who operate the plane, could have an impact on the United States’ first quarter GDP reading. The draw down could also be magnified as carriers head into the first-quarter earnings season, when JP Morgan says things could get turbulent.
Last week, investigators released their first report detailing the horrifying minutes if Ethiopian Airlines’ doomed flight, which catalyzed Boeing’s crisis in March. The plane hit the ground at 575 mph, leaving a crated 32 feet deep, the report said.
American said its reservations team will contact affected customers directly by email or phone.
"We know these cancellations and changes may affect some of our customers, and we are working to limit the impact to the smallest number of customers," American said.
More coverage of Boeing’s 737 Max crisis:
- TVs in US airports censored a report about the 737 Max investigation and replaced it with a viral cake video
- A timeline of Ethiopian Airlines Flight ET302 shows its pilots fighting desperately to save their doomed Boeing 737 Max jet
- Boeing will cut production of its 737 Max plane amid growing international crisis
- Wall Street is cutting its Boeing estimates in the face of the company’s 737 Max crisis
- Boeing’s 737 Max 8 nightmare and troublesome politics threaten the US’s standing as the global aviation leader
See Also:
- Passengers on Southwest Airlines thought they were flying on a Boeing 737 Max after confusion about their onboard safety cards
- A little-known quirk on the Boeing 737 may have made things difficult for the pilots of the crashed Ethiopian Airlines flight
- UBS is cutting its Boeing estimates in the face of the company’s 737 Max crisis
Source: Business Insider – grapier@businessinsider.com (Graham Rapier)