American Airlines expects to lose $400 mln from Boeing 737 MAX grounding

American Airlines Group Inc said on Thursday it expected the Boeing 737 MAX grounding to hit its 2019 pretax earnings by about $400 million, Report informs citing Reuters.

Thus, the aviation carrier has upgraded its outlook on losses by $50 mln.

American, the second largest U.S. operator of the MAX, has removed its jets from its schedule through early November.

The company now has 24 MAX airplanes and 76 more airplanes of this model have already been ordered with seven to be delivered in Q2.

Within these three months alone the company lost $175 mln due to problems with Boeing. In general, the company ended this quarter with a net profit of $662 mln, according to the company's financial statement. It makes a 16% growth over the last year. The earnings over the three reporting months rose by 2.7% to reach $12 bn, a record high for the second quarters of the company.