American Airlines has warned its "earnings forecast affected by the grounding of our Boeing 737 MAX fleet", according to chairman and CEO Doug Parker after the firm reported its Q1 2019 results.
The airline, which has removed its MAX fleet from its flying schedule until 19 Aug, has said that this will impact its 2019 pre-tax earnings by approximately $350 million, after cancelling 1,200 flights in the first quarter.
Parker added: "With the recent run-up in oil prices, fuel expenses for the year are also expected to be approximately $650 million higher than we forecast just three months ago."
Elsewhere, the group reported strong passenger demand drove a 1.8% year-over-year increase in total revenue, to a first quarter record $10.6 billion.
In its first quarter 2019 results, the airline posted pre-tax profit of $245 million, excluding net special items, and a first quarter net profit of $185 million excluding net special items.
Parker was upbeat on the future of the airline, with a particular focus on next year.
He said: "As we look forward to 2020 and beyond, we anticipate that our free cash flow production will increase significantly as our historic fleet replacement program winds down. We are very bullish on our future and focused on creating value for our shareholders.