July 10, 2019 / 1:09 PM / a year ago

American Airlines sees $185 million profit hit from Boeing MAX grounding

FILE PHOTO: American Airlines Boeing 737 MAX jets sit parked at a facility in Tulsa, Oklahoma, U.S., May 10, 2019. American Airlines/Handout via REUTERS/File Photo

(Reuters) - American Airlines Group Inc said on Wednesday its second-quarter profit would be reduced by about $185 million as the No.1 U.S. airline had to cancel thousands of flights due to the grounding of Boeing Co’s 737 MAX jets.

The airline, which has already pulled MAX off its flying schedule through Sept. 3, had in April cut its annual profit forecast, blaming an estimated $350 million hit due to the groundings.

American, which has the second-biggest fleet of MAX aircraft in the United States with 24 jets, said it canceled about 7,800 flights in the second quarter.

Fewer planes in service boosted second-quarter unit revenue, a measure that compares sales to flight capacity.

It now expects unit revenue to increase between 3% and 4% percent in the quarter ended June, compared with its earlier forecast of a rise of between 1% and 3%. (bit.ly/2Lf12bo)

The company’s shares were up about 2% in premarket trading, pushing other airline stocks higher.

Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty

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