American Airlines extends Max-caused cancellations to June 5

Boeing 737 MAX assembly

The move came after two deadly crashes over the past six months both involving 737 Max aircraft and killing a combined 346 people.

Earlier in the week, Southwest also admitted that the grounding of its 34 737 MAX planes has led to canceling about 150 flights per day, and would do so all the way until May 2019.

All of Boeing's 737 Max planes were grounded after the crash in Ethiopia last month.

American, for its part, also believes the grounding may last that long, and canceled flights on the affected plane through at least June 5 on Monday.

Luckily, despite being one of the biggest USA operators of the 737 Max, the model makes up relatively few of Southwest's revenue seat miles, a closely watched metric for airline investors, Syth says.

Boeing is under huge pressure to update software in its airplanes.

A preliminary report released last Thursday by the Ethiopian Ministry of Transport's Aircraft Accident Investigation Bureau revealed that the American-made aircraft had a valid certificate of airworthiness, the crew were licensed and qualified to conduct the flight and the plane's takeoff appeared normal.

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The company's shares had plummeted in the wake of the Ethiopian Airlines crash, with around US$28 billion being wiped off the company's value.

American said Sunday that by canceling the flights in advance, "we are able to provide better service to our customers with availability and re-booking options", and to avoid last-minute flight disruptions.

The lawsuit was filed in U.S. District Court in Chicago, where Boeing is based, on behalf of the family of Mucaad Hussein Abdalla.

Legal complaints are mounting, with consumer advocate Ralph Nader urging a recall of the Max on behalf of his grand-niece who died in the Ethiopian Airlines crash.

Boeing shares plummeted as much as 4.4% to $374.88 for the biggest drop in about four weeks. The event was to showcase the updated automated flight control system and the revised pilot training protocols.

Besides working on advancing and testing its software update, Muilenburg said the company is adjusting its production system temporarily to accommodate the "pause" in MAX deliveries. He stopped short of saying Boeing's initial recommendations were insufficient, acknowledging only that erroneous activation of the software "can add to what is already a high workload environment". What we do know, however, is that airlines are losing nearly $60 million a day because of the 737 MAX grounding.

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