Thousands of flights canceled
Boeing mishap costs United Airlines $200 million
April 17, 2024, 2:49 p.m
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When an Alaska Airlines Boeing 737 MAX 9 lost a cabin door cover in flight at the beginning of January, United Airlines also had to shut down its fleet for three weeks. The result: a drop in profits of $200 million.
United Airlines blames Boeing for a $200 million drop in profits in the first three months of this year. The airline was forced to idle its Boeing 737 Max 9 fleet for three weeks. In early January, an Alaska Airlines Boeing 737 MAX 9 lost a cabin door cover in flight. The more than 170 people on board largely escaped horror. Without this burden, the airline said it would have closed the quarter with a profit. The bottom line was a loss of $124 million after being in the red of $194 million in the same quarter last year.
United and Alaska were forced to cancel thousands of flights as inspections were conducted in January before the Federal Aviation Administration reopened flights. United has 79 Boeing 737 MAX 9s in its fleet, more than any of its competitors. Earlier this month, Boeing paid Alaska $160 million to compensate for lost revenue and additional expenses. It is not yet known whether United Airlines can also expect compensation.
The Chicago-based airline is suffering from the ongoing crisis at Boeing. United also said operations were also impacted by delays in the delivery of Boeing aircraft. “We have adjusted our fleet plan to better reflect the reality of what manufacturers can deliver,” United Chief Executive Scott Kirby said in a statement. The airline also halted pilot hiring for May and June and offered its pilots unpaid leave.
Recently, several technical breakdowns in Boeing aircraft caused uncertainty. The aircraft manufacturer is under increased pressure to improve quality controls. CEO Dave Calhoun recently announced his retirement.