American Airlines cuts first-quarter revenue guidance on 737 Max troubles

Earnings

The prolonged grounding of Boeing’s 737 Max jets forced American Airlines on Tuesday to cut its revenue guidance for the first quarter.

The company reduced its total expected revenue per seat mile, a key industry measure of performance, to flat to up to 1% from its previous guidance of flat to up to 2%.

The airline’s fleet includes 24 of the 737 Max jets, which have been grounded following the March 10 crash of Ethiopian Airlines flight 302 over Addis Ababa. American cancelled 1,200 flights during the first quarter as a result of the grounding.

This story is developing. Please check back for updates.

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