American Airlines announced that they're expecting to take a $350 million hit in 2019 thanks to the grounding of the Boeing 737 Max 8 planes.
The airline had to remove 24 planes from its lineup through August 19, which has caused them to cancel 1,200 flights in the first quarter and 115 daily cancellations through the summer.
In the first three months of 2019, American said they lost $50 million in profit. A $350 million loss is their newest prediction for 2019, assuming that all goes to plan and the Boeing 737 MAX 8 planes are back in commission by August 19.
"As we begin to prepare for summer peak season, the fundamentals of our business remain strong," said Doug Parker, American Airlines chairman and chief executive officer during a first-quarter earnings call, according to The Fort Worth Star-Telegram.
"The near-term forecast, however, has been affected by the 737 MAX grounding, which we currently estimate will impact our pre-tax 2019 result by approximately $350 million, and that assumes that they are flying as we have them scheduled by Aug. 19."
American Airlines shares were down 2 percent at $32.77 in morning trading, and they expect their 2019 adjusted profit to only be $4.00 to $6.00 per share which is lower than their previous prediction of $5.50 to $7.50 per share.
The airline added that they expect fuel expenses to increase due to a recent increase in oil prices. They now believe it will be $650 million higher.
The FAA was expected to approve a new system update for the Boeing 737 MAX in April, but it looks like it will take longer, especially if pilot unions and global regulators require airlines to make their pilots undergo training under the new system.
American Airlines seems onboard with getting feedback from their pilots before introducing the 24 planes back into the fleet.
"Our pilots will be not just involved, but critical to this process," Doug Parker said, according to The Washington Post. "We'll make sure that at whatever time the aircraft is deemed airworthy, our pilots will have a leadership role in ensuring they are comfortable with that."
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