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American Airlines cancels 5,000 more flights as Boeing's embattled 737 Max plane remains grounded

Graham Rapier   

American Airlines cancels 5,000 more flights as Boeing's embattled 737 Max plane remains grounded
Transportation2 min read

American Airlines Boeing 737 Max grounded

Joe Raedle/Getty Images

  • American Airlines has extended its cancellation of Boeing 737 Max flights through June 5.
  • The carrier operates about 90 flights on the grounded plane per day, it said in a press release.
  • Wall Street analysts are warning Boeing's crisis could not only bring down the stock, but the entire US economy, too.

The fallout from Boeing's worst crisis in years still has no end in sight for airlines that operate the embattled 737 Max jet.

American Airlines, which operates 24 planes of the planes, said Sunday that it will cancel all flights on the model, or roughly 90 per day, through at least June 5.

"In an effort to provide more certainty and avoid last minute flight disruptions, American has extended cancellations through June 5," the company said in a press release. "This will result in the cancellation of approximately 90 flights each day based on our current schedule. By proactively canceling these flights, we are able to provide better service to our customers with availability and rebooking options."

Shares of the airline were down about 1% in pre-market trading Monday following the update.

Read more: Boeing's 737 Max crisis could drag down the entire US economy, Wall Street analysts are warning

In March, American saw the first impact of the plane's grounding on its service, and canceled the 90 daily flights through April 24.

Some Wall Street analysts have warned that the potential impact to Boeing's revenue as it cuts production of the plane, as well as slightly fewer revenue-generating flight by airlines who operate the plane, could have an impact on the United States' first quarter GDP reading. The draw down could also be magnified as carriers head into the first-quarter earnings season, when JP Morgan says things could get turbulent.

Last week, investigators released their first report detailing the horrifying minutes if Ethiopian Airlines' doomed flight, which catalyzed Boeing's crisis in March. The plane hit the ground at 575 mph, leaving a crated 32 feet deep, the report said.

American said its reservations team will contact affected customers directly by email or phone.

"We know these cancellations and changes may affect some of our customers, and we are working to limit the impact to the smallest number of customers," American said.

More coverage of Boeing's 737 Max crisis:

Get the latest Boeing stock price here.

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