INTERNATIONAL – American Airlines Group 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 US airline, said the compensation would be received over several years. The airline will use more than $30 million of the compensation for the airline’s 2019 employee profit-sharing programme.
American said it did not expect any material financial impact of the agreement to be realised in its fourth-quarter 2019 earnings and it would continue talks regarding compensation for damages related to the MAX grounding beyond 2019.
The Association of Professional Flight Attendants, which represents American Airlines’ 28 000 flight attendants, said it welcomed the news about compensation, and was evaluating the details.
Boeing said it generally did not comment on discussions with airlines.