American Airlines (AAL) said it will start operating the Boeing 737 Max in December. Boeing (BA) stock rose.




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The carrier said Sunday that it would operate a daily Boeing 737 Max flight between Miami and New York from Dec. 29 to Jan. 4. Passengers can start booking the flight on Oct. 24.

But American warned that the plane’s return to service was “highly dependent” on the Federal Aviation Administration’s approval. The jet has been grounded since March 2019 following a second deadly crash.

The Boeing 737 Max return to service comes as global travel remains depressed during the coronavirus pandemic. On Sunday, the Transportation Security Administration said it screened 1.03 million passengers, the most since March. But that’s still down 60% from 2019 levels.

Aviation industry executives have predicted demand may not return to pre-panedemic levels for three to four years.

American Air shares rose 2.2% to 12.75 on the stock market today. Top 737 Max customer Southwest Airlines (LUV) rallied 2.5%. Boeing stock was up 1.5%. Boeing 737 Max supplier Spirit AeroSystems (SPR) and engine supplier General Electric (GE) were both up 1.9%.


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Regulators Look At Boeing 737 Max Return

The European Union Aviation Safety Agency said last week that the Boeing 737 Max is safe to fly again before the end of the year, the first clear timeline from a global regulator.

Meanwhile, the FAA hasn’t committed yet to a date for the 737 Max’s return to service.

FAA Administrator Steve Dickson flew the Boeing 737 Max last month. He said he liked what he saw on the flight but warned that the FAA was “not to the point yet where we have completed the process.”

“We’re in the home stretch, but that’s doesn’t mean we’re going to take shortcuts to get it done by a certain date,” Dickson said.

Transport Canada also completed recertification flights and is analyzing the data before it clears the jet to return to service.

Follow Gillian Rich on Twitter @IBD_GRich for aviation news and more. 

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The post American Airlines Puts Boeing 737 Max Back On Flight Schedule appeared first on Investor’s Business Daily.

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