Alaska Airlines has revealed in a SEC filing that Boeing paid the carrier $160 million for lost profits following the 737 MAX 9 grounding.
In the filing on April 4, 2024, Alaska Airlines said its first quarter operations and results were “significantly impacted” by Flight 1282 in January 2024 and the subsequent 737 MAX 9 grounding.
Alaska Airlines Flight 1282 suffered a door plug blowout on January 5, 2024, resulting in a rapid decompression onboard the jet shortly after takeoff from Portland International Airport (PDX).
According to Alaska Airlines, the compensation from Boeing the losses incurred by the carrier from “lost revenues, costs due to irregular operations, and costs to restore our fleet to operating service”.
The airline added in the filing that the payment was “initial” compensation and further redress is “expected” to be provided beyond the first quarter.
“Q1 adjusted loss per share will not include the Boeing compensation and is expected to be approximately ($1.15) to ($1.05). This reflects approximately ($0.95) cents of lost earnings due to Flight 1282 and the 737-9 MAX grounding lost profits,” Alaska Airlines said in its SEC filing.
The airline added that despite the impact of the aircraft accident “strategic network adjustments, strong demand within the quarter, and continued recovery of West Coast business travel” had led to an improvement in its core business performance in the first three months of 2024.
The Federal Aviation Administration (FAA) grounded 170 Boeing 737 MAX 9 aircraft operating in the United States on January 6, 2024, after the Alaska Airlines plug door blowout.
This incident prompted the grounding and extensive examination of Boeing 737 MAX 9 fleets worldwide.
Alaska Airlines’ first 737-9 cleared to operate again following the grounding took off on January 26, 2024.
