Icelandair secures further compensation from Boeing for the 737 MAX grounding

Reykjavik, Iceland - Iceland's flag carrier Icelandair has secured a second compensation from Boeing for the 737 MAX grounding.

The Icelandic carrier revealed the agreement with Boeing during the presentation of its financial figures in the third quarter of the year.

The airline had previously signed a partial compensation deal with the American aircraft manufacturer in September.

Icelandair said the recent agreement was reached on October 31st, but the carrier did not provide the details of the agreement since it was confidential.

The Icelandair Group also said that the impact of the 737 MAX grounding on the airline's net revenues is still significant and the company continues to discuss it with Boeing.

Icelandair was expecting to include nine 737 MAX jets in its fleet this year, which stands for 25% of its fleet and 27% of its current seating capacity.

The prolonged grounding of the 737 MAXs has created an imbalance in the Icelandair's route network and also affected load factors and average ticket fares, the carrier noted.

Icelandair's key strength is the flexibility of the route network, which has allowed us to optimize our flight schedule by shifting our focus towards more profitable routes and markets,

said Icelandair Group president and chief executive Bogi Nils Bogason.

The 737 MAX is expected to return to service in the first quarter of 2020. But the delivery dates of the new planes remain unknown.

Icelandair has already secured compensation for three 737 MAX jets that were set for delivery this year.

The carrier has five 737 MAX jets (four 737 MAX 8 and one 737 MAX 9) in its fleet and 11 (five 737 MAX 8 and six 737 MAX 9) more on order waiting to be delivered.