American Airlines and Boeing reach agreement on damages
American Airlines said on Monday that it had reached a confidential agreement with Boeing to address damages the airline incurred in 2019 due to the ongoing grounding of its fleet of Boeing 737 MAX aircraft.
American, the largest U.S. airline, said the compensation will be received over several years. The airline will use more than USD 30 million of the compensation for the airline’s 2019 employee profit-sharing program.
American said it does not expect any material financial impact of the agreement to be realized in its fourth-quarter 2019 earnings and it will continue talks regarding compensation for damages related to the MAX grounding beyond 2019, Reuters reports.
Boeing’s best-selling 737 MAX has been grounded since two fatal crashes in five months killed 346 people.
The company is halting production this month. A number of airlines have struck confidential settlements with Boeing in recent weeks.