Icelandair secures additional 737 Max compensation

Icelandair Group has reached a second agreement with Boeing regarding partial compensation for the 737 Max suspension. The company disclosed the agreement during a Q3r financial results briefing. It had previously reached a partial compensation pact with the US airframer, which it mentioned in September. "This was recognised partially as increased passenger revenue and partially as decreased aircraft lease expenses in aviation expenses," says Icelandair Group. The company adds that a second agreement was reached on 31 October, the details of which are confidential. But it says the estimated net earnings impact from the 737 Max suspension is "still significant" and the company remains in discussion with Boeing over the financial losses. Icelandair Group had expected to have nine 737 Max jets in its fleet this year, accounting for 25% of its fleet and 27% of available seats. Suspension of the type has "created imbalance" in the Icelandair route network, it says, adversely affecting load factors and average fares.<br/>