Fuller flights amid a good consumer environment enabled American's profits to soar 14.2 percent higher in the third quarter to $425 million. Revenues increased three percent to $11.9 billion.
Chief Executive Doug Parker said he was pleased with the earnings growth but conceded that "our results should have been better." Parker cited the hit from the MAX grounding - in the wake of two deadly crashes - as well as ongoing operational challenges tied to contentious labor talks with maintenance workers.
American now estimates the MAX grounding will shave pre-tax profits by $540 million in 2019, up from the prior estimate of a $400 million hit to the bottom line.
Parker said the company intends to recover compensation from Boeing for its growing MAX-related costs and to "ensure that Boeing shareholders bear the cost of Boeing's failure, not American's shareholders." Boeing has set aside $4.9 billion for customers harmed by the MAX grounding and indicated that the payments could come in cash or through in-kind contributions in aircraft or services.
Earlier this month, American pushed back the return of the jets until January 2020 based on slower-than-expected recertification of the plane by regulators. The MAX was grounded in March following two crashes that killed 346 people.