American Airlines and Boeing reach compensation agreement over 737MAX suspension

American Airlines Group announced Monday that it has reached a nondisclosure agreement with Boeing over damages caused by the 737 MAX’s suspension. The largest U.S. airline said the payments would be paid in instalments over several years and planned to use more than $30 million of the compensation to split employee profits in 2019.

American Airlines and Boeing reach compensation agreement over 737MAX suspension

The company said it did not expect any significant financial impact of the agreement to be reflected in its fourth-quarter 2019 results and would continue to negotiate damages related to the 737 MAX suspension beyond 2019.

Earlier in the day, Aeromexico also announced an agreement with Boeing on compensation for the 737MAX suspension.

Prior to that, Boeing had reached an agreement with Southwest Airlines and Turkish Airlines over compensation for the suspension of the 737 MAX.