American Airlines Group sees $185 million profit hit from ground Boeing 737 MAX jets

With fewer planes in service, the airlines saw its second-quarter unit revenue, increase between 3% and 4% percent in the quarter ended June.

According to a statement from the No.1 U.S. airline, American Airlines Group Inc, its second-quarter profit will take a hit of around $185 million due to the cancellations of thousands of flights because of the grounding of Boeing Co’s 737 MAX jets.

American Airlines has already pulled the Boeing 737 MAX from its flying schedule through September 3,; it has also slashed its annual profit forecast.

The airlines has the second-biggest fleet of Boeing 737 MAX aircraft in the United States with 24 jets. It has canceled around 7,800 flights in the second quarter.

Incidentally, fewer planes in its service has boosted its second-quarter unit revenue – a measure that compares sales to flight capacity.

American Airlines now expects unit revenue to increase between 3% and 4% percent in the quarter ended June, compared with its earlier forecast of a rise of between 1% and 3%.

Its shares were up about 2% in pre-market trading, pushing other airline stocks higher.

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