American Airlines is warning Boeing that it could cancel some overdue orders for the grounded 737 Max unless the plane maker helps line up new financing for the jets, according to people familiar with the discussions.
American’s stand comes as airlines are finding financing increasingly difficult and expensive as the coronavirus pandemic has crippled their operations.
American had 24 Max jets before they were grounded in March 2019. It has orders for 76 more but wants Boeing to help arrange financing for 17 planes for which previous financing has or will soon expire, according to three people who spoke Friday on condition of anonymity to discuss private talks between the companies.
If the companies can’t reach an agreement, American could use Max financing that is about to expire to pay for jets from Boeing’s archrival Airbus, one of the people said.
Chicago-based Boeing said in a statement that it is working with customers during “an unprecedented time for our industry as airlines confront a steep drop in traffic,” but did not comment on the talks with American. The Fort Worth, Texas-based airline declined to comment.
How major US stock indexes fared Friday
Stocks closed broadly higher on Wall Street Friday as the S&P 500 notched its third weekly gain in the last four.
The benchmark index’s biggest gains came from cruise operators, airlines, banks and other companies that most need the economy to reopen and strengthen.
The technology-heavy Nasdaq Composite hit a new all-time high. The Russell 2000 index of small-cap stocks also recorded a solid gain, and Treasury yields erased an early dip.
The S&P 500 rose 32.99 points, or 1.1%, to 3,185.04.
The Dow Jones Industrial Average gained 369.21 points, or 1.4%, to 26,075.30.
The Nasdaq Composite added 69.69 points, or 0.7%, to 10,617.44.
The Russell 2000 index of small company stocks picked up 23.76 points, or 1.7%, to 1,422.68.
Benchmark U.S. crude oil for August delivery rose 93 cents to settle at $40.55 a barrel Friday. Brent crude oil for September delivery gained 89 cents to $43.24 a barrel.
Wholesale gasoline for August delivery added 3 cents to $1.28 a gallon. August heating oil gained 2 cents to $1.24 a gallon. August natural gas rose 3 cents to $1.81 per 1,000 cubic feet.
Gold for August delivery slipped $1.90 to $1,801.90 an ounce, silver for September delivery rose 9 cents to $19.05 an ounce and September copper rose 6 cents to $2.90 a pound.
The dollar fell to 106.94 Japanese yen from 107.20 yen. The euro rose to $1.1298 from $1.1296.
