American Defers 37 Boeing Deliveries As Long As Three Years

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American Airlines Group Inc. delayed deliveries of quite three dozen Boeing Co. aircraft and projected a deeper loss than analysts expected because the coronavirus pandemic continues to quash corporate and international travel.

Eighteen 737 Max jets that were to be delivered this year and next are going to be postponed to 2023 and 2024, the carrier said during a regulatory filing Tuesday. American also will take fourteen 787-8 planes at the top of subsequent year’s half-moon , rather than this year. Another five of that widebody aircraft are going to be converted to the 787-9 version, with shipments delayed until 2023.

The first-quarter adjusted loss are going to be $4.29 to $4.41 a share, American said. Analysts had projected $4.05, consistent with the typical of estimates compiled by Bloomberg. Revenue will decline 62% from an equivalent quarter in 2019, before the pandemic decimated travel. The Fort Worth , Texas-based company previously said the drop could reach 65%.

American’s revenue projection meshed with an identical outlook from United Airlines Holdings Inc. as increased vaccinations against Covid-19 fuel a rebound in domestic flying. International and business demand has fallen as far as 80% below pre-pandemic levels, however.

The optimism over domestic travel was dealt a blow Tuesday, as U.S. health officials involved an instantaneous pause within the use of Johnson & Johnson’s vaccine over concerns about blood clots.

American dropped 2.9% to $22.25 at 11:03 a.m. in ny , with much of the decline spurred by the J&J news. Other carriers and cruise lines declined also . Boeing rose but 1% to $251.71.

Read more: Boeing’s 737 Max Comeback Fuels Rare Sales convert Airbus

American’s first-quarter loss excluding credits linked to federal payroll aid and costs of an employee early pension plan is predicted to be the maximum amount as $2.8 billion, the carrier said. The airline projected burning a mean of $27 million each day in cash for the quarter, compared with previous guidance of $30 million. Its burn rate turned positive in March, excluding debt principal and severance payments.

(Updates with details on cash consumption in seventh paragraph. A previous version of this story was corrected to point that aircraft delivery deferrals weren’t limited to the 737 Max)

Source: Bloomberg