(Reuters) - American Airlines Group Inc
Earlier in the day, Mexico's Aeromexico
Neither airline disclosed the size of the payment to be received from Boeing.
Boeing's best-selling 737 MAX has been grounded since last March, following two fatal crashes in five months that killed 346 people, and there is no date set for when it will be able to return to use. Boeing is halting production in mid-January.
A number of airlines have struck confidential settlements with Boeing in recent weeks.
Boeing said it does not comment on discussions with airlines.
American said the compensation from Boeing will be received over several years, and of the total amount, more than $30 million (22.8 million pounds) will be used for the airline's 2019 employee profit-sharing program. It said it does not expect any material financial impact to be realized in its fourth-quarter 2019 earnings and it will continue talks regarding compensation for damages related to the MAX grounding beyond 2019.
Aeromexico said it remains in talks with Boeing and regulatory authorities.
Southwest Airlines Co
Earlier on Monday, the Wall Street Journal reported that Boeing is considering plans to raise more debt to bolster its finances after the grounding of the 737 MAX.
Boeing is also considering deferring some capital expenditures, freezing acquisitions and cutting spending on research and development to preserve cash, the report https://www.wsj.com/articles/boeing-considers-raising-debt-as-max-crisis-takes-toll-11578308401?mod=searchresults&page=1&pos=3 said, citing people familiar with the matter.
Boeing did not immediately respond to a Reuters request for comment on the WSJ report.
Boeing shares ended the day up 0.29% at $333.74.
(Reporting by David Shepardson in Washington and Sanjana Shivdas and Shanti S Nair in Bengaluru; Editing by Leslie Adler)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
Updated Date: Jan 07, 2020 05:06:42 IST