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American Airlines (AAL) Cuts Summer Flights on Boeing's Delays

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American Airlines (AAL - Free Report) will reduce international flying this summer as delivery delays of the Boeing 787-8 aircraft weigh on its operations. The airline is delaying the launch of one service, temporarily suspending some flights and reducing flight frequency on one route.

Boeing (BA - Free Report) was supposed to deliver 13 787 Dreamliner jets to American Airlines in 2022. However, due to production issues, it will now deliver only 10 787-8 planes to the airline this year. The remaining are scheduled to be delivered in 2023. The company will compensate AAL for the delay in delivering the aircraft on time.

Boeing’s production issues pertaining to the 787 Dreamliner aircraft have continued for a while now. Deliveries of the aircraft have remained suspended since May 2021 as the Federal Aviation Administration raised concerns about BA’s inspection method, Reuters reported. As U.S. regulators continue to review repairs and inspections, deliveries are expected to remain paused for several more months.


Boeing’s delivery issues have forced American Airlines to delay the launch of its Dallas-Fort Worth (“DFW”)-Tel Aviv flights and temporarily suspend Seattle, WA-London Heathrow, DFW-Santiago and Los Angeles-Sydney flights. The airline has also reduced the Miami, FL-Sao Paulo service to once daily.

Despite reducing its international schedule this summer, American Airlines will offer nearly 6,000 peak-day departures. In a SEC filing, AAL said, “Our 787-8 aircraft are an essential part of our fleet. And despite the ongoing delay, we still have tremendous confidence in the aircraft and will continue to work with Boeing on their delivery.”

While American Airlines carries a Zacks Rank #3 (Hold), Boeing carries a Zacks Rank #4 (Sell).

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