Investigators are focusing on a system that is supposed to help the Boeing workhorse aircraft avoid stalling in flight.
One of America's largest airlines is cancelling 115 flights a day because of fears over the safety of the Boeing 737 Max aircraft.
American said it remains "confident" that software updates and new training for the Boeing planes "will lead to recertification of the aircraft soon".
The plane's grounding has also threatened the USA summer travel season, with some airlines removing the 737 from their schedules through August and canceling a number of scheduled flights.
The cancellations come after the Boeing 737 Max's anti-stall software was implicated in an airplane crash in March in Ethiopia, CNBC reported.
The airline's CEO Doug Parker and President Robert Isom issued a statement saying it would cancel 115 flights daily through August 19, representing approximately 1.5 of the airlines' flying each day during the summer.
Boeing's anti-stall software is at the center of investigations into last month's Ethiopian Airlines crash.
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Boeing also faces a tsunami of lawsuits arising from the 737 MAX that will amount into the billions of dollars.
On Thursday, Southwest airlines announced the decision to extend its cancellation of Boeing 737 Max aircraft through August 5. It will likely submit the fix to Federal Aviation Administration regulators within the next few weeks.
American is the third major USA airline to announce a suspension of 737 MAX flights.
"You can't hide the 737, you've got thousands of them of all types flying worldwide today for airlines", Henry Harteveldt, travel industry analyst and founder of Atmosphere Research Group, told Business Insider.
American previously planned to cancel MAX flights through early June. According to the airline, they're taking the MAX out of its schedule until August to reduce the need for last-minute changes during the summer travel season and to make the schedule more reliable.
Overall the MAX represents just 5 percent of Southwest's total fleet and even less for American and United, but the strain on fleets increases as additional MAX deliveries remain frozen.
Numerous families of the 346 victims of Lion Air Flight 610 and Ethiopian Airlines Flight 302 have filed multiple lawsuits against Boeing. "We own it and we know how to do it", Muilenburg added.
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