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American Airlines Extends Boeing 737 Max Cancellations Until Mid-January

American Airlines said its Boeing 737 Max cancellations will now extend through at least January 15.

The company now expects to fly about 70.1 billion available seat miles in the fourth quarter, as a result of the extension of the grounding.

American Airlines anticipates that the impending software updates to the Boeing 737 MAX will lead to recertification of the aircraft later this year and resumption of commercial service in January 2020.

The Airline also expects to slowly phase in the MAX for commercial service starting January 16 and will increase flying on the aircraft throughout the month and into February.

In March, the FAA ordered the grounding of all Boeing 737 Max jets after two deadly crashes that killed a total of 346 people.

American Airlines said today that it cancelled 9,475 flights in the third quarter and estimates that the cancellations in the third quarter negatively impacted pre-tax income by about $140 million.

The company expects its third quarter total revenue per available seat mile to be up about 1.5 to 2.5 percent year-over-year, despite the negative impact to revenue of Hurricane Dorian. The midpoint of this guidance is unchanged from the company's previous guidance of up approximately 1.0 to 3.0 percent.

The company expects its total pre-tax net special items in the third quarter will be about $280 million. The special items consist of a $200 million non-cash impairment charge related to the retirement of the company's E190 fleet, as well as fleet restructuring costs.

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