United Airlines’ First-Quarter 2024 Financial Results show the impact of the Boeing 737 MAX 9 grounding.
The financial report is a stark look at the way the commercial aviation provider has been hit since a mechanical fault forced a plane to land.
United Records Financial Hit
The Federal Aviation Administration (FAA) was quick to act after an Alaskan Airline flight had a malfunction whilst it was in the air.
A door plug unexpectedly blew off causing the regulator to ground the airline’s Boeing 737 MAX 9. Thousands of flights were canceled and United’s production line was stalled whilst the FAA looked into the harrowing incident.
Today’s financial announcement marks the company’s first look back at a turbulent year. This quarter’s earnings reflect the $200 million impact of the Boeing 737 MAX 9 grounding, without which the company would have reported a quarterly profit. These earnings reflect the approximately $200 million impact from the Boeing 737 MAX 9 grounding, without which the company would have reported a quarterly profit.”
United would pay Alaska Airlines $160 for the grounding of the 737 Max 9, which looks to have swallowed a substantial amount of the profit that the company could have recorded this financial year.
The report would go into the decision of the FAA and discus the impact that the airline’s production delays have cost the company. According to the report, “following 737 MAX 9’s grounding as well as the FAA’s announcement of significant production capacity restrictions on Boeing,” the airline now expects 61 narrowbody and five widebody aircraft will be delivered by 2024. The company will be hoping to put the mechanical fault behind them in the coming financial year and hope the FAA is satisfied with the rigours of their production process.
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