The grounding of its Boeing 737 Max fleet and rising oil prices will cost American Airlines (AAL) nearly $1 billion dollars.
"We presently estimate the grounding of the 737 MAX will impact our 2019 pre-tax earnings by approximately $350 million. 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," the airline said in a release.
These troubles forced the airline to cut its full-year earnings forecast. It did turn a first-quarter profit.
American's shares are down 2% in early trading.