American Airlines (AAL) - Get American Airlines Group, Inc. Report is threatening to cancel some of its Boeing 737 MAX orders, according to the Wall Street Journal. The airline ordered 17 of the planes for 2020 delivery.
However, with travel mostly halted due to the pandemic, American Airlines is struggling to pay for the planes.
American Airlines said that as of July 1 it had stopped restricting the number of seats sold on flights.
Shares of American were climbing 5% to $11.74, while Boeing was rising 1.74% to $176.30.
Boeing’s 737 MAX aircrafts were grounded in March 2019 after two tragic crashes killed 346 people. Boeing (BA) - Get Boeing Company Report announced in May 2020 that it was resuming production of the aircrafts.
Travel stocks from airlines to hotels have struggled amid the coronavirus pandemic. Investors have been forced to grapple with a resurgence of cases.
There are now more than 3 million confirmed cases of the coronavirus in the United States with over 133,000 deaths. The virus has been spiking recently, as the U.S. recorded its sixth single-day record in 10 days.
On Thursday, there were nearly 60,000 new cases added.
Watch More Videos From TheStreet and Jim Cramer:
- Is Apple Stock a Safe Haven for Q3?
- Disney World to Open Gates July 11—Disney Theme Park Reopenings by Date and Location
- 'Build Back Better:' Joe Biden's Economic Plan
- Jim Cramer: NFL’s Plan for Fall Has Everything to Do With Money
- What Coronavirus Means for Business of Back to School
- Where Does Warren Buffett Donate His Money?
- Jim Cramer: I'll Eat Outside at a Restaurant, But Not Inside