American Airlines reaches deal with Boeing over 737 Max grounding compensation

[tacobell fan]

• American Airlines reached an agreement over lost revenue from the 737 Max in 2019.
• More payments could be on the way because it isn’t clear when the FAA will lift the flight ban.
• The planes have been grounded worldwide since mid-March after two crashes within five months of one another.

[tacobell fan]

American Airlines said Monday that it has reached an agreement with Boeing over 2019 compensation for financial damages stemming from the grounding of the 737 Max, which is now in its 10th month.

Airlines have lost more than $1 billion in revenue because of the grounding after two fatal crashes. Boeing and Southwest Airlines ⁠— the largest U.S. operator of the 737 Max ⁠— disclosed they had reached an agreement last month.

American didn’t disclose the terms of the agreement but said it would add $30 million to an employee profit sharing program, payable later this year. Southwest took a similar step, saying it would share $125 million with its workers.