United Airlines released its first quarter earnings on Tuesday in which it indicated that it lost about $200 million due to the temporary grounding of the Boeing 737 Max 9 earlier this year.
The Chicago-based airline announced that it had a pre-tax loss of $164 million for the quarter, which was an improvement of $92 million from the same quarter a year ago, and noted that the loss was caused by the 737 Max 9 grounding.
“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 wrote in its earnings release. ”
United is one of two U.S. carriers that operate the Boeing 737 Max 9, with the other being Alaska Airlines.
Alaska returned its fleet to service on Jan. 26, and United followed suit the following day.
The grounding of the Max 9 and the FAA’s constraints on Boeing’s production capacity due to increased oversight of its manufacturing quality was also noted in the earnings report.
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United Airlines announced its first-quarter earnings results on Tuesday, revealing that the temporary grounding of the Boeing 737 Max 9 earlier this year cost the airline approximately $200 million.
The Chicago-based airline reported that the 737 Max 9 grounding was the reason for its $164 million pre-tax loss for the quarter, which was an improvement of $92 million over the same period last year.
United stated in its earnings release that “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 is a pair of U.S. S. , Alaska Airlines being one of the other carriers using the Boeing 737 Max 9. A day after a Jan., the Federal Aviation Administration (FAA) temporarily grounded the aircraft. 5, an Alaska Airlines 737 Max 9 experienced a plug door panel blowout mid-air after takeoff, depressurizing the cabin and requiring an emergency landing back at Portland International Airport in Oregon.
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The 737 Max 9 fleet’s aircraft with plug door panels were inspected by the FAA, Boeing, and airlines, and the aircraft was cleared to return to service in January. 24 after inspections are finished. January saw Alaska’s fleet put back into service. United did the same the next day, on June 26.
The earnings report also mentioned the Max 9 grounding and the FAA’s limitations on Boeing’s production capacity because of increased oversight of the company’s manufacturing quality. United originally projected that it would receive 101 narrowbody aircraft this year, but it has since revised its expectations, saying that it will receive 61 narrowbody and five widebody aircraft in 2024.
As per United’s writing, “the company anticipates that in the near future, a few aircraft that were initially planned to start operations in the second quarter will now likely be delayed to the third quarter. This should not significantly affect the company’s overall capacity plans.”.
Amid ongoing Boeing issues, the United States requests that pilots take unpaid time off.
Beyond what was stated in its earnings release, United declined to comment.
Ticker Security Last Modified Change Percent BA THE BOEING CO. 1.70191, -0.3535, -0.221 percentual UNITED AIRLINES HOLDINGS INC. 48/74% + 7/24 + 17/45 percent.
Brian West, the chief financial officer, spoke about the effects of the 737 Max 9 grounding and delivery issues on customers on March 20 at the Bank of America Industrial Conference. Boeing forwarded FOX Business his remarks.
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We put our customers in a difficult situation, so talking to them is the most crucial thing we do. “And they have shown their support for all of our efforts to improve industry safety and quality,” added West.
In addition, we have to be aware of their needs as they plan their flight schedules and passengers. “We are in regular, very transparent communications, and they know precisely where we stand and the progress we’re making,” he said. We’re telling them about the slowdown so that we can work through it together and support our customers. In the short term, it has affected both of us and them. “.
Therefore, in relation to the events of January 5, we must address customer consideration, which will naturally show up in the PandL and the quarter. We are well on our way to taking care of that. And we’ll keep up our support for our clients with that obligation,” West continued.
