Boeing 737 Max grounding hits American Airlines outlook

737 Max aircraft is examined at the Boeing factory in Renton Wash

The company said yesterday that it had delivered 149 commercial aircraft in the first three months of the year, down from 238 in the preceding three months and 184 in the first quarter of 2018.

New training and supplemental educational material are also being developed for 737 MAX pilots. It didn't disclose the amount of compensation it would be asking for.

More families of victims of the Lion Air crash in Indonesia are suing Boeing after its chief executive apologised and said a software update for the MAX 8 jet would prevent further disasters. The suit is the criticism at a number of claims from Boeing after two 737 Max crashes in just seven months. The No. 1 US carrier owns 24 of the brand-new Boeing Co aircraft whose use was suspended around the world in March. It has been actively communicating with Boeing concerning the issue, a senior manager said, and before any future moves are made, it must be determined whether the aircraft has a serious design flaw.

Boeing first-quarter deliveries and orders dropped sharply amid 737 Max groundings and the accident with the Ethiopian Airlines plane.

Regulators worldwide grounded the planes within days of the Ethiopia crash, a move that also restricts Boeing's ability to deliver new planes - a metric that is closely tied to company revenues. Meanwhile, airlines that own the almost 400 grounded Max jets are canceling flights. In all, 346 people died. It was the second fatal crash involving a Max in recent months.

"The reputational loss from these events could erode long-term market share and pricing power of the 737 Max", Bank of America Merrill Lynch analyst Ronald Epstein said in a research report.

United failed to meet its operational performance incentive targets in the quarter due to those headwinds, but Kirby said that with warmer weather ahead, he was "confident that we can pull off a spring and summer for the record books".

Since the Boeing 737 Max 8 was grounded in the USA 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.

Over the weekend, American removed the plane from its schedule for an additional six weeks, through June 5.

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