Alaska Airlines revealed in a filing on Thursday that its financial performance in the first quarter was significantly impacted by the grounding of the Boeing 737 Max 9 aircraft, along with the aftermath of Flight 1282 incident in January.
In its filing, the airline stated, “As a result of the Flight 1282 accident and the Boeing 737-9 MAX grounding, we lost approximately $160 million in Q1 pretax profit.”
The airline further noted that it had received initial compensation from Boeing to address the financial losses incurred due to these events. “As part of this compensation, Boeing paid Air Group approximately $160 million in cash during the first quarter,” Alaska Airlines confirmed.
The Federal Aviation Administration (FAA) grounded the Boeing 737 Max jets after an incident involving Flight 1282, where a door plug blew out of a nearly new Boeing 737 Max 9 aircraft operated by Alaska Airlines at 16,000 feet. The incident raised safety concerns, prompting the grounding of the aircraft model.
While the initial compensation has been received, Alaska Airlines anticipates further compensation from Boeing to mitigate the financial impact of the grounding. The airline’s statement indicates ongoing discussions regarding additional compensation from the aerospace giant.
