Do you have holiday plans? Not so fast. American Airlines canceled all 737MAX flights until mid-January – about 140 flights per day through the holiday season.
The MAX groundings have already cost American Airlines millions of dollars.
- You’re grounded! Two 737MAX airplanes crashed within 5 months, leading regulators to ground the plane last March citing safety concerns.
- American offline. American Airlines canceled 9,475 flights last quarter. Cancelling isn’t cheap. It cost the company $140 million.
- Cloudy skies ahead. American is more pessimistic about the MAX’s return than its peers. Southwest and United are expecting to have the plane back sooner.
- Back by 2019. Boeing says they have a software fix for the MAX and the plane will return to the skies by the end of the year.
Send Them a Bill. American Airlines wants Boeing to pay. Boeing has $4.9 billion set aside to pay these types of claims, but the damage isn’t done yet.
How Does It Affect My Wallet?
If you’re forced to travel to your in-law’s this holiday season, expect longer lines, crowded flights, and more crying babies ruining your in-flight beauty sleep.
The 737MAX grounding is impacting the entire airline industry. Other notables:
- United Airlines – canceled around 2,400 737 Max flights in June and July.
- Air Canada and Southwest Airlines – Have the highest number of Max aircraft in their hangars. They anticipate that the aircraft will be out of commission until next year.
Don’t trip. If you were scheduled to fly on one of the canceled planes, American Airlines will contact you to rebook you on another plane.
If you’re not scheduled to fly on a 737MAX aircraft, you could still be affected. The airline may reassign planes to cover higher-traffic routes and your flight could end up canceled.
Too long, didn’t read…
American Airlines extended its 737MAX cancellations until mid-January and expects to remove about 160 flights per day from its schedule.
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