By Kyle Arnold / The Dallas Morning News
DALLAS —American Airlines lost $185 million and canceled 7,800 flights during the second quarter after regulators grounded Boeing 737 Max jets.
Fort Worth-based American Airlines tallied the 737 Max impact in an investor update Wednesday morning, two weeks ahead of its earnings release. Those numbers only account for losses from the second quarter of April to June. It said it would give a full-year projection when it reports earnings.
The 737 Max has been grounded since March with no end in sight after U.S. and European regulators have told Boeing that more fixes would be needed after two plane crashes over the last year killed 346 people in Indonesia and Ethiopia. The crashes have been blamed on a faulty software system intended to keep the plane aloft.
American has faced a rough few months, blaming a spike in delays and cancelations on problems with the 737 Max jets as well as a labor dispute with union mechanics seeking a new contract.
American Airlines has 24 737 Max series aircraft in its fleet, accounting for about 1.4% of all flights. It’s taken some routes out of its schedule, such as one between Dallas-Fort Worth International Airport, and taken flights out where demand could afford it.
American, so far, has taken 737 Max planes off its schedule through Sept. 3.
American Airlines said the $185 million was pre-tax losses, it said in its note to investors.
To worsen the problem, American Airlines said it was scheduled to receive another seven Max jets during the second quarter. But with the Federal Aviation Administration ordering Boeing to make more fixes, airline chiefs such as Southwest’s Gary Kelly have said it could be longer before it sees the jets back in the air.
Dallas-based Southwest Airlines has the largest fleet of Boeing 737 Max jets with 34. With just under 5% of its fleet out of service, Southwest said it has canceled roughly 150 flights a day to accommodate.
Dallas-based Southwest said it doesn’t have the aircraft scheduled to fly until at least Oct. 2, but it could be longer.
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