American Airlines employees are to receive an additional $30 million in profit sharing this year after the airline agreed on compensation pay-out from plane maker Boeing.
American did not disclose how much it will receive in the ‘confidential agreement’ but will boost its annual profit sharing scheme by $30 million.
“American will continue its conversations with Boeing regarding compensation for damages related to the Max grounding beyond 2019, and any future compensation will be similarly shared with its team members,” the airline said.
In October the airline said the global Max grounding would result in a $540 million hit to pre-tax profits. It has cancelled thousands of flights since the Max was grounded in March 2019.
The Max crisis will cost Boeing at least $9 billion. The plane maker has agreed initial compensation packages with Southwest Airlines, Aeromexico and Turkish Airlines.