United Airlines claims that it lost $200 million during the first quarter of 2024 because of Boeing’s issues. United grounded its Boeing 737 Max 9 fleet three weeks after part of a Boeing plane blew out during an Alaska Airlines flight.
According to the airline, its pre-tax loss was $164 million in the first quarter of the year. The airline said that United would have “reported a quarterly profit” if not for Boeing’s safety-related issues. On the bright side, the loss was smaller than what Wall Street expected.
After the announcement, United’s shares jumped by more than 5%.
United has 79 Boeing 737 Max 9 units, making it the second-largest fleet of 737 Max 9s after Alaska Airlines. Both Alaska and United canceled thousands of flights as inspections were conducted on Boeing’s 737 Max 9s.
Additionally, the Federal Aviation Administrator is reviewing United’s protocols after recent cases involving safety. As a result, United’s deployment of new planes will be delayed. The earliest possible date for receiving new planes is September.
United informed its investors that the delays in the deliveries of new Boeing planes will impact their operations. United’s CEO Scott Kirby said, “We’ve adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver.”
Earlier this month, Boeing paid Alaska $160 million to cover the losses that the airline incurred.
Last March, Boeing’s chief financial officer Brian West said that airlines like United Airlines were “supportive of everything we’re trying to do to enhance safety and quality for the industry.”
Boeing is currently under pressure after a whistleblower exposed the company for having safety issues such as taking shortcuts in the construction of 787 and 777 planes. Engineer Sam Salehpour said that he was “threatened with termination” after raising these safety concerns with his superiors.
Boeing denied these allegations saying that these are “inaccurate.” Boeing added that the company is confident that their planes are safe.
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