American sees $185m negative impact on Q2 from Max cancellations

American Airlines expects a negative impact of $185m to its Q2 pre-tax income from cancellation of Boeing 737 Max flights. The carrier scrapped 7,800 flights in Q2 and has removed all 737 Max-operated flights from its schedule through 3 September. It expects to provide an update on the full-year impact from the cancellations in its Q2 earnings call, expected to take place later this month. American had operated a fleet of 24 737 Max aircraft before US regulators grounded the aircraft on 13 March. The 737 Max cancellations are only one part of an operationally challenging Q2 for the carrier, which in May sued two mechanics' unions in an effort to halt an alleged work slowdown the airline said delayed or forced cancellation of more than 1,000 flights. A temporary restraining order to end the slowdown was granted by a federal court in June. "That slowdown has significantly impacted the company’s operation and caused a significant number of flight cancellations and delays in the second quarter," said American in an investors update. As a result of the flight cancellations, the carrier operated 72.3b available seat miles in the second quarter, or 1.1b fewer than previously guided.<br/>