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Max 9 grounding will cost Alaska Airlines $150 million
Alaska Airlines says the grounding of its fleet of Boeing 737 Max 9 jets will cost it about $150 million.
It will also impact its 2024 capacity growth, the airline said in a filing.
Its Boeing Max fleet has been idle since early January after a door plug blew out mid-flight.
It prompted the FAA to impose a grounding of Boeing 737 Max 9 jets.
United Airlines, the other main user of the planes, said it will take a big financial hit due to the ongoing grounding.
It affects a total of 171 planes.
The FAA has now approved an inspection and maintenance process for the aircraft, and a pathway to returning the aircraft to service.
Alaska Airlines says it will have the first few Max jets ready to fly again as early as this Friday.
However, it has downgraded its first quarter capacity growth due to the phased in return to service which will take some time.
It also expects some delays on new aircraft deliveries with more stringent safety and maintenance checks for new aircraft.
Alaska Air CEO this week vented his frustration at the situation which he blames as a Boeing production fault.
The FAA is still investigating Boeing’s production life practices and quality control.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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