When it comes to Boeing and Alaska Airlines, the recent incident involving Flight 1282 has had significant financial implications. According to reports, Boeing paid Alaska Airlines a staggering $160 million in compensation in the first quarter due to the grounding of the 737 Max 9. This grounding was a result of a door plug blowing out of a nearly new Boeing 737 Max 9 operated by Alaska Airlines, leading to a potentially catastrophic situation.
The Federal Aviation Administration took quick action to ground the jets after the incident, which occurred at 16,000 feet. Alaska Airlines stated in a filing that their first-quarter results were greatly impacted by the incident and the subsequent grounding of the Boeing 737-9 MAX, which extended into February. Despite this setback, Alaska Airlines reported that demand remained strong, with February and March performing above their original expectations due to core improvements.
This incident has not only affected Alaska Airlines but also other carriers like United Airlines. United Airlines’ pilots’ union informed its members that the airline is offering unpaid time off in May due to delayed Boeing deliveries. This news comes amid additional government scrutiny and a slowdown in aircraft deliveries and production for Boeing.
As a result of this news, Alaska Airlines’ shares were up over 5% in morning trading, while Boeing saw a 1% increase. This is in comparison to the broader market, which experienced a 0.6% gain.
At Extreme Investor Network, we strive to provide our readers with unique insights and in-depth analysis of the latest business news. Stay tuned for more updates on this evolving situation and its impact on the aviation industry.
