United Airlines blames Boeing for $200m blowout cost

• The airline reported a pre-tax loss of $164 million for the first quarter.
• United and Alaska Airlines had to cancel thousands of flights in January due to inspections.
• Boeing compensated Alaska with $160 million to offset the losses.

In the first three months of this year, United Airlines attributed a $200 million (£161 million) dent in its earnings to Boeing. The carrier grounded its Boeing 737 MAX 9 fleet for three weeks following a mid-air cabin blowout on an Alaska Airlines flight in January. This incident compelled United to report a pre-tax loss of $164 million for the first quarter.

The airline stated that it “would have reported a quarterly profit” if not for the incident. Despite this setback, the loss was less than what Wall Street had anticipated, leading to a more than 5% increase in United’s shares following the announcement. With 79 Boeing 737 MAX 9s in its fleet, United possesses more of these aircraft than any of its competitors, second only to Alaska Airlines.

In January, United and Alaska Airlines had to cancel thousands of flights as they conducted inspections before the US aviation regulator cleared the planes for resuming flights. Boeing compensated Alaska with $160 million earlier this month to offset the losses the airline incurred. United informed investors that delays in Boeing plane deliveries also affected its operations.

“We’ve adjusted our fleet plan to better reflect the reality of what the manufacturers can deliver,” United’s chief executive Scott Kirby said in a statement.

Boeing encountered fresh pressure when a whistleblower reported safety concerns regarding the manufacturing of some of its planes to US regulators. Engineer Sam Salehpour accused Boeing of taking shortcuts in constructing its 787 and 777 jets. He stated that he was “threatened with termination” after raising concerns with bosses.

Boeing rebutted the allegations, labeling them as “inaccurate” and expressing confidence in the safety of its planes. Mr. Salehpour is scheduled to serve as the key witness at a US Senate hearing on April 17. On January 5, shortly after take-off, a door plug on an Alaska Airlines 737 Max 9 blew off, terrifying passengers and necessitating an emergency return to the Portland, Oregon airport.

The latest incident has raised fresh questions about the safety of Boeing’s aircraft. Following two fatal crashes of 737 Max 8 passenger jets in 2018 and 2019, which claimed the lives of 346 people, the company faced intense scrutiny.

Also Read

United Airlines’ Emergency Landing Marks Fifth Incident in a Week

United Airlines' Flight 830 emergency lands in Sydney, marking the fifth incident....