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American Airlines extends cancellations of 737 Max flights

American Boeing max 2020

Some costs are rising, but jet fuel was cheaper than American had expected during the quarter, and it slightly raised its profit-margin estimate. It previously dropped the MAX from its schedule through December 3.

American Airlines Boeing 737 MAX jets sit parked at a facility in Tulsa, Oklahoma on May 10, 2019.

The airline said Wednesday that it expects to slowly bring the plane back into its schedule starting January 16.

On top of that, Boeing Co.'s last month's deliveries dropped by roughly 83 per cent to 26 aircrafts, down from 87 deliveries on a year-on-year basis.

"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 said in a press release.

A spokesman for the FAA said the agency will "lift the aircraft's prohibition order when it is deemed safe to do so".

Boeing delivered just five 737 planes during the latest quarter, down from 138 in the 2018 period.

The Max was grounded worldwide after two crashes in Indonesia and Ethiopia killed 346 people.

Other US operators of the MAX have similar schedules to reintroduce the aircraft, with Southwest Airlines now showing a January 5 return to service, and United Airlines saying December 19.

An ongoing regulatory safety review means a key 737 MAX certification test flight is unlikely before November, Reuters reported Tuesday. Starting October 13, the airline's reservations and sales team will contact affected customers who are impacted by any potential flight cancellations.

American said it will announce a policy "in the coming weeks" for travelers who "do not wish to fly on the MAX".

Boeing then worked to address FAA requests for additional information on the system architecture, detailing how pilots interact with the airplane controls and displays in different flight scenarios.

Customers booked on a MAX flight through to January 6 will be automatically accommodated on the same flights operated by a Boeing 737-800.

Meanwhile, Southwest, the world's largest Boeing 737 MAX carrier, has delayed pilot hiring while the jetliner remains grounded. Boeing said the suit is "merit-less".

American Airlines said Wednesday it expects federal officials to sign off on software updates and other changes to Boeing's 737 Max jets later this year and plans to resume passenger service on the aircraft on January 16.