American, Southwest report $1B in losses tied to Boeing 737 Max

Oct. 24 (UPI) -- American and Southwest Airlines, the only two U.S. carriers who own Boeing's 737 Max 8, said Thursday they face combined losses of more than $1 billion because the troubled airliner still hasn't returned to service.

Both carriers reported third quarter earnings on Thursday -- which showed a loss of $435 million for Southwest since March and a yearly projected loss of $540 million for American. The model was grounded in the spring after two crashes overseas that killed nearly 350 people.

Southwest owns 31 737 Max 8s and American 24. American said it canceled 9,500 flights, due to the grounding, in the third quarter alone.

Boeing has said it's set aside $5 billion to compensate airlines worldwide. It is not yet known when the Boeing's fleet -- both Max 8s and Max 9s -- can return to service. The plane maker said recently it expects the plane to be certified for flight by the end of the year.

Southwest has removed its Max fleet from its flight schedule until at least Feb. 8, and American doesn't expect to fly them until January. United Airlines, which owns a fleet of Max 9 aircraft, said it's also eyeing a January return.

Wednesday, the families of four victims reached a settlement with Boeing over the crashes.

"Our goals are justice for the victims, accountability from Boeing and safer skies for everyone -- whether we get there by settlement or by trial," plaintiffs attorney Mark Lindquist said.