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Boeing Compensates $160M to Alaska Airlines

Daniel Kim Views  

Yonhap News

Boeing has compensated Alaska Airlines for a plane incident that occurred last January.

On the 4th, Alaska Airlines announced that Boeing paid approximately $160 million in the first quarter as an initial compensation to resolve the impact of the temporary landing of the 737 Max 9 jet.

According to Alaska Airlines documents, this payment corresponds to the lost profits for the quarter, and they expect additional compensation from Boeing.

Also, they plan to exclude the compensation from Boeing that was supposed to be included in the calculation of the expected first-quarter adjusted loss per share, which ranges from $1.05 to $1.15.

Yonhap News

The Max 9 passenger plane operated by Alaska Airlines was grounded temporarily by U.S. aviation regulators for inspection of 171 planes following an explosion of a cabin panel in mid-air last January.

As a result, Alaska Airlines and United Airlines suffered the most damage.

Last month, Alaska stated that its capacity plan for 2024 is unstable due to Boeing’s crisis.

Alaska Airlines CEO Ben Minicucci said, “We expect not to receive all 47 deliveries planned for the next two years.”

On the other hand, all single-aisle jets from Airbus, another major aircraft supplier in the aviation industry, are sold out until the end of the 2010s.

Daniel Kim
content@viewusglobal.com

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