Wednesday, 03 June, 2020

American Airlines sees $185 million profit hit from Boeing MAX grounding

Boeing 737 MAX airplanes are being stored on employee parking lots near Boeing field in Washington state Boeing 737 MAX airplanes are being stored on employee parking lots near Boeing field in Washington state More
Deanna Wagner | 10 July, 2019, 20:55

A few airlines have shown confidence in Boeing's once best-selling 737 MAX jet since the fatal crashes in Indonesia and Ethiopia, which killed 346 people.

Airbus is on track to overtake Boeing in commercial plane deliveries for 2019 after outpacing its USA rival at mid-year following the 737 MAX grounding, according to data released Tuesday.

Airbus is on track to overtake Boeing as the world's biggest planemaker as the U.S. company reported a slump in deliveries of new commercial jetliner deliveries following two fatal crashes involving the 737 Max.

While there is no prediction about the return of the 737 MAX, several customers around the world have postponed their orders already predicting they cannot count on the jet in a short time.

Boeing said Tuesday that it delivered 24 737s in the second quarter, down sharply from the 89 delivered in the first quarter.

Oil Prices Jump On Bullish Inventory Data
Gulf of Mexico began evacuating workers and shutting in output as a storm gathers strength off the coast of Florida. Exxon MobilXOM.N said it was "closely monitoring " the disturbance to determine if its facilities might beaffected.

The company, which has the second-biggest fleet of MAX aircraft in the United States with 24 jets, now expects unit revenue, a measure that compares sales to flight capacity, to increase between 3% and 4% percent in the quarter ended June, compared with its earlier forecast of a rise of between 1% and 3%. Boeing delivered two jumbo 747s, the same number as in the first quarter and 10 767s, double the number it delivered in the second quarter of previous year. Boeing still lists the airline's 187 unfilled orders as active. Over the weekend, flyadeal, a budget airline based in Saudi Arabia, canceled a provisional order for 30 Boeing 737 Max planes, and said it would take delivery of A320 jets from Airbus instead. However, the parent company of British Airways said last month that it intends to buy 200 - a move seen as a show of support for the troubled plane. In April, flydubai said it may consider an Airbus order to replace its Max order. Both airlines and Boeing have been force to park the grounded jets.

Delta will report its second-quarter results on Thursday.

June was the third straight month of no new orders for the model.

Shares in the Chicago company rose $1.97 to close at $353.09.