American Trims Revenue Estimate Citing Grounded Boeing Jet

American Airlines is cutting a key revenue estimate partly because of canceled flights due to the grounding of its Boeing 737 Max jets.

American said Tuesday that it canceled 1,200 flights during the quarter that ended March 31 because regulators grounded its 24 Max planes.

Over the weekend, the airline removed the plane from its schedule through June 5 -- six weeks longer than before -- underlining that airlines think the Max will be parked longer than previously expected after deadly crashes in Indonesia and Ethiopia.

American says revenue for each seat flown one mile will be flat to up 1 percent, down from its initial forecast of flat to up 2 percent.

It also blames the government shutdown and 940 cancellations due to work on other Boeing planes.

Copyright AP - Associated Press
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