American Airlines to Share Boeing 737 MAX Compensation With Employees

Update: January 7, 2020 at 8:20 a.m. ET

Officials from American Airlines announced Monday it had reached a confidential agreement with Boeing regarding compensation for the grounding of the 737 MAX fleet and its impact on the carrier in 2019.

American’s Board of Directors has authorized a portion of the settlement to be returned to employees through the company’s 2019 profit-sharing program. An additional accrual of more than $30 million will be made to the program, which is expected to be distributed in March 2020.

“Despite the ongoing challenges the grounding has brought, American Airlines team members continue to do an incredible job caring for our customers,” American CEO Doug Parker said in a statement. “Our ability as an airline to weather these unprecedented times is thanks to our phenomenal team, and it was important to us that we get a deal done before the end of the year.”