US Airline Expects Losses Due to Grounding of Boeing 737 Max 9 Jets
In a blow to the aviation industry, a major US airline is bracing itself for financial losses as a result of the grounding of Boeing 737 Max 9 jets. The US Federal Aviation Administration (FAA) made the decision to ground 171 of these aircraft after an unused door broke away mid-flight. United Airlines, with 79 of these planes in its fleet, has been hit the hardest, followed closely by Alaska Airlines. Both carriers have been forced to cancel numerous flights as inspections are carried out.
United Airlines has stated that it anticipates the planes to remain grounded until January 26th, and its financial forecast assumes that they will not be able to operate any flights with these aircraft throughout the entire month. The grounding of the Boeing 737 Max 9 jets has had a significant impact on United Airlines’ operations and profitability.
The incident that led to the grounding occurred during an Alaska Airlines flight from Portland, Oregon to Ontario, California. As the plane reached an altitude of 16,000 feet, the unused emergency exit door blew out, prompting an emergency descent. This incident raised concerns about the safety of these aircraft and led to the FAA’s decision to ground them.
In response to the incident, the FAA has also ordered inspections of another model, the older 737-900ER, as it utilizes the same door design. United Airlines has 136 of these jets in its fleet. However, unlike the newer 737 Max 9s, the FAA did not order the grounding of the older model while inspections are being carried out. The agency emphasized that the safety of passengers is their top priority and that the timeline for returning these aircraft to service will be determined by safety considerations rather than speed.
Boeing, the manufacturer of these aircraft, has pledged to enhance the quality of inspections in its manufacturing processes following the incident. The company recognizes the need to address any potential issues and ensure the safety of its planes.
The financial impact of the grounding is already being felt by United Airlines, as evidenced by its recent report of flat pre-tax profits of $3.4 billion for the entirety of 2023. The airline is expected to provide an update on the safety inspections of the grounded planes during a call with analysts and investors. Both Alaska Airlines and Boeing are also scheduled to release their financial results in the coming weeks, shedding further light on the consequences of this grounding.
The grounding of the Boeing 737 Max 9 jets has not only disrupted the operations of major US airlines but has also raised concerns about aviation safety. As investigations and inspections continue, the industry awaits further updates on when these aircraft will be deemed safe to fly again. In the meantime, airlines like United and Alaska are grappling with financial losses and the challenge of accommodating affected passengers. The focus remains on ensuring the safety of the flying public and restoring confidence in these aircraft.
