United Airlines’ first-quarter 2024 financial results show the impact of the Boeing 737 MAX 9 grounding.
The financial report offers a stark look at how the commercial aviation supplier has been affected since a mechanical failure forced a plane to land.
United Records financial blow
The Federal Aviation Administration (FAA) acted quickly after an Alaskan Airline flight suffered a malfunction while in flight.
A port plug blew unexpectedly, forcing the regulator to ground the airline’s Boeing 737 MAX 9. Thousands of flights were canceled and United’s production line was grounded while the FAA examined the harrowing accident.
Today’s financial announcement marks the company’s first look at a turbulent year. The company “reported a pre-tax loss of $164 million, a $92 million improvement over the same quarter last year; Adjusted pre-tax loss1 of $79 million, an improvement of $187 million on an adjusted basis compared to the same quarter last year. These earnings reflect the impact of approximately $200 million from the grounding of the Boeing 737 MAX 9, 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 appears to have gobbled up a substantial portion of the profit the company could have made this financial year.
The report would cover the FAA’s decision and discuss the impact that the airline’s production delays have cost the company. The report states that “following the grounding of the 737 MAX 9 and significant production capacity constraints announced by the FAA on Boeing, the company now expects delivery of 61 narrow-body aircraft and 5 wide-body aircraft in 2024.”
A financial year to forget for one of America’s most recognized brands and trusted operators. The company hopes to put the mechanical failure behind them in the next financial year and hopes the FAA is satisfied with the rigors of their manufacturing process.
Image: ideogram.
The article After United Airlines Records $200 Million Damage Due to Boeing Grounding appeared first on Due.