American Airlines executives confident 737 MAX will be ungrounded by August 19

American Airlines executives confident 737 MAX will be ungrounded by August 19

American said it expects unit revenue, a closely watched performance measure that compares sales with flight capacity, to rise between 1 percent and 3 percent year-on-year in the second quarter.

American Airlines Group Inc cut its 2019 profit forecast on Friday, blaming an estimated $350 million hit from the grounding of Boeing's 737 MAX planes during its busiest travel season, but said it was confident the aircraft would start flying by mid-August.

Southwest Airlines made considerably less profit in the first months of the year as expected.

Parker added that American is also expected to pay $650 million more in fuel expenses this year because of spiking oil prices.

American Airlines, Southwest Airlines and European budget carrier Norwegian all revealed this week that the inability to utilize the troubled plane will cost the combined airlines almost $600 million.

Chairman and Chief Executive Officer, Gary C. Kelly praised Southwest employees as the driving force behind the Company's continued success amid the MAX jet groundings. Per the Independent, in the first two months of 2019, about 30% of all 737 Max flights from European airports were operated by Norwegian.

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"That doesn't mean we will be an all-737 carrier into perpetuity", he told CNBC Thursday.

European discount carrier Norwegian said Thursday the grounding will cost it NOK 500 million, or $58 million United States dollars, in 2019.

Southwest has 34 MAX planes in its current fleet and is targeting August 5 as a resumption date.

"When the FAA recertifies the Max, we absolutely will fly the plane". The airline has ordered more than 100 of the 737 Max 8 planes. "That's our regulator", Parker said on a call with analysts and reporters. "We will send this bill to those who produced the aircraft".

"Risks specific to Boeing would include increased supply chain operational issues which cause significant delays in deliveries", UBS Investment Bank said in an analyst note.

Before that can happen, plane maker Boeing must develop a software fix for the 737 Max and new pilot training for regulatory approval by the US Federal Aviation Administration. "That's work ahead of us, and we take that very seriously".

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