Icelandair has reached an initial agreement with Boeing partially compensating the airline for earnings lost as a result of the 737 Max grounding.
The airline says the “interim” compensation agreement covers “a fraction” of the total losses incurred as a result of the grounding which began in March this year and has yet to be lifted.
It has not revealed the agreed figure, nor has it given other details about the arrangement.
But Icelandair had estimated the impact of the grounding on earnings at $140 million by 1 August, and says this figure has increased since. It says that, “taking into account” the agreement with Boeing, the financial impact to date is around $135 million.
Icelandair has six 737 Max jets in its fleet, five Max 8s and a Max 9, with more on order. It says it intends to “continue its discussions” with Boeing over compensation.