United Airlines experienced a staggering pre-tax loss of $164 million in the first quarter of the year, largely due to the temporary grounding of the Boeing 737 Max 9. The airline reported that this grounding alone had a $200 million impact on their earnings.
The Boeing 737 Max 9 was grounded by the Federal Aviation Administration (FAA) following an incident involving Alaska Airlines. After thorough inspections, the aircraft was cleared to return to service in late January. However, the repercussions of the grounding are still being felt by United Airlines.
Originally, the airline had anticipated receiving 101 narrowbody aircraft at the beginning of the year, but now they only expect to receive 61 narrowbody and 5 widebody aircraft by 2024. As a result of these delivery issues, United Airlines has asked pilots to take unpaid time off.
Boeing’s Chief Financial Officer addressed the impact of the Max 9 grounding and delivery issues on customers during a conference in March. Additionally, Boeing made an initial payment of $160 million to Alaska Airlines following the mid-air blowout incident.
Despite these challenges, Boeing and United Airlines are working closely with customers to address concerns and ensure safety and quality in the industry. Both companies are committed to overcoming these setbacks and moving forward in a positive direction.
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