American Airlines sees $185 million profit hit from Boeing MAX grounding

Data by YCharts

But the Max has been grounded worldwide for almost four months, since the second of two crashes that together killed 346 people.

Deliveries of Boeing airliners tumbled 37% in the first half of 2019 as the company struggled to fix its best-selling plane after two deadly crashes, and Europe's Airbus surged far ahead in the competition between the world's leading aircraft manufacturers.

American Airlines has 24 737 Max series aircraft in its fleet, accounting for about 1.4 percent of all flights.

Officials with Indonesia's Garuda said in March that they were canceling the remaining 49 of a 50-jet Max order.

Boeing reported that it delivered 239 planes in the first half of 2019, down from 378 in the same period a year ago. The company delivered 42 Dreamliners in the second quarter, up from 36 in the first quarter and 39 in the fourth quarter of 2018.

The growing inventory costs of the undelivered planes is draining about $3 billion a quarter from Boeing, Cai von Rumohr, an analyst with Cowen & Co., estimated in a July 8 report. Boeing didn't include the orders in its monthly tally because the order isn't finalized.

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Boeing's campaign to restore the reputation of its best-selling plane after two deadly crashes suffered a blow with a Saudi airline canceling an order worth up to $5.9 billion in favor of a European rival of the USA manufacturer. Oman Air said in June it would start talks with Airbus if Boeing didn't provide "support and recovery" for the 737 Max.

"While flyadeal's withdrawal is a bit concerning, we would seriously revisit our delivery forecast if a flagship customer like Southwest or Ryanair flipped to Airbus' A320neo or A220 platform", Goode said in a note.

Boeing got a boost at the Paris Air Show when the parent company of British Airways and Spain's Iberia said it intends to buy another 200 Max planes. Both airlines and Boeing have been force to park the grounded jets.

Morningstar analyst Danny Goode said he does not expect other carriers to follow flyadeal as long as Boeing is able to ensure reentry of the 737 MAX by the end of the year.

Shares rose $1.92 to $353.04 in afternoon trading.

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