The 737 Max grounding will cost Alaska Airlines $150 million

The 737 Max grounding will cost Alaska Airlines $150 million

Jan 25,2024
New York CNN  — 

The grounding of the 737 Max 9 after a January 5 incident that blew a hole in the side of an Alaska Airlines plane earlier this month will cost the airline about $150 million, Alaska announced Thursday.

The loss is significant to an airline the size of Alaska, which reported on Thursday an adjusted income of $38 million in the final three months of the year and $583 million for the full year. The fourth quarter income was better than forecast for Alaska.

The door plug blew off an Alaska Airlines flight on January 5, leaving a gaping hole in the side of the plane. While no passengers were killed, the incident led the Federal Aviation Administration to order a grounding of all 737 Max 9 jets. With 65 of the planes Alaska has the second most 737 Max 9 jets in its fleet, behind only United, which has also warned it expects a first quarter loss at least partly due to the cost of the grounding.

On Wednesday, the FAA spelled out inspection procedures to return the planes to flight. Alaska Air said the first of its grounded jets will be back in service on Friday with more planes added every day as reviews are completed and each aircraft is deemed airworthy.

“We expect inspections on all our 737-9 Max to be completed over the next week,” it said.

Alaska Airlines CEO Ben Minicucci told NBC in an interview Tuesday that the carrier found “some loose bolts on many” Boeing 737 Max 9 during its inspections.

Even with the $150 million hit from the grounding, Alaska said it still expects to report a full-year 2024 profit of about $381 million to $635 million, but that guidance suggests it could fall short of estimates of $583 million, according to analysts surveyed by Refinitiv. Analysts are forecasting a loss of $79 million in the first quarter.

Alaska and United are the only US airlines with the 737 Max 9 jet in their fleets. But it doesn’t mean they’re the only affected by the problems at Boeing.

Southwest Airlines said Thursday that it now expects fewer 737 Max deliveries from Boeing this year than it had booked because one of the models it orders, the 737 Max 7, has yet to be certified by the FAA. It warned the timing of those planes could be delayed further.

Maybe You Like

Trump stock tanks after issuing tens of millions new shares

CNN — Trump Media & Technology Group’s stock is tumbling again after the company announced a massive new influx of shares. A new public stock offering of 21.5 million shares announced Monday would add more than 15% more stock...

Three ways investors can minimize their tax payments

New York CNN — It’s Tax Day in the United States. Some Americans are scrambling to get their documents in on time, while others are figuring out how to pay what they owe or enjoying a return of cash from the IRS. Either way,...

Dow tumbles more than 300 points on fears of potential attack by Iran and inflation woes

New York CNN — US stocks slid Friday morning as Wall Street worried about escalating tension in the Middle East and sticky inflation. The Dow fell 308 points, or 0.8%. The S&P 500 declined 0.8% and the Nasdaq Composite lost 1%....

Latest Added Hyip programs

Added: Apr 15,2024
Added: Apr 15,2024
Added: Apr 15,2024
Added: Apr 15,2024
Added: Apr 15,2024
(52) (
Added: Apr 15,2024
Added: Apr 15,2024
Added: Apr 15,2024