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Boeing reaches deal with Icelandair for 737 MAX grounding costs

|About: The Boeing Company (BA)|By:, SA News Editor

Icelandair says Boeing (NYSE:BA) has agreed to cover costs associated with the airline's fleet of six grounded 737 MAX jets, making it the first carrier to disclose such a settlement since the planes stopped flying in March.

The size of the compensation is not disclosed; the airline's previous estimates of the cost from grounding were ~$1.3M per day.

Boeing took a $5.6B charge against Q2 earnings to cover anticipated payments for more than 380 MAX jets that have been grounded and hundreds more planes that cannot be delivered until regulators lift a flight ban on the aircraft.

BA shares closed -1.3% in today's trade as the head of the Federal Aviation Administration said a series of steps needed to be completed before the 737 MAX could return to service.

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