American defers 37 Boeing deliveries as long as three years

American Airlines Group Inc. delayed deliveries of more than three dozen Boeing Co. aircraft for as long as three years and projected a deeper loss than analysts expected as the coronavirus pandemic continues to quash corporate and international travel.

Eighteen 737 Max jets that were to be delivered this year and next will be postponed to 2023 and 2024, the carrier said in a regulatory filing Tuesday. American will also take fourteen 787-8 planes at the end of the next year’s first quarter, instead of this year. Another five of that wide-body aircraft will be converted to the 787-9 version, with shipment delayed until 2023.

The first-quarter adjusted loss will be $4.29 to $4.41 a share, American said. Analysts had projected $4.05, according to the average of estimates compiled by Bloomberg. Revenue will decline 62% from the same quarter in 2019, before the pandemic decimated travel. The Fort Worth, Texas-based company previously said the drop could reach 65%.

American’s revenue projection meshed with a similar outlook from United Airlines Holdings Inc. as increased vaccinations against Covid-19 fuel a rebound in domestic flying. International and business demand has stagnated at as much as 80% below 2019 levels, however.

The optimism over domestic travel was dealt a blow Tuesday, as U.S. health officials called for an immediate pause in the use of Johnson & Johnson’s vaccine over concerns about blood clots.

American dropped 2.7% to $22.30 at 9:36 a.m. in New York, with much of the decline spurred by the J&J news before the start of regular trading. Other carriers and cruise lines declined as well.