Chicago, Illinois – United Airlines faced a $200 million hit to its earnings in the first quarter of this year, attributing it to a grounding of its Boeing 737 MAX 9 fleet due to a mid-air cabin incident on an Alaska Airlines flight. This forced United to report a pre-tax loss of $164 million, which would have otherwise been a profitable quarter.
The airline’s decision to ground its fleet for three weeks led to the cancellation of thousands of flights, impacting its operations significantly. Despite the financial setback, United’s loss was less than what Wall Street had anticipated, resulting in a positive response from investors with a more than 5% increase in the company’s shares.
With 79 Boeing 737 MAX 9s in its fleet, United Airlines holds the majority of these planes compared to its competitors, second only to Alaska Airlines. The disruptions also led to delays in Boeing plane deliveries, prompting changes to United’s fleet plan to align with the manufacturer’s capacity.
During a conference in March, United’s chief financial officer Brian West expressed gratitude for the support received from customers as they worked towards enhancing safety measures. He reassured stakeholders of the company’s commitment to responsibility amidst the challenges faced in the industry.
Concerns over Boeing’s safety standards were further heightened when whistleblower allegations emerged regarding the construction practices of its 787 and 777 jets. Engineer Sam Salehpour accused the company of taking shortcuts and compromising safety, leading to an ongoing investigation by US regulators.
Boeing denied the allegations, emphasizing their confidence in the safety of their planes despite the whistleblower’s claims. The engineer is set to testify at a US Senate hearing to address the issues raised, shedding light on the challenges within the aviation industry.
The incident on the Alaska Airlines 737 MAX 9 in January reignited doubts about the safety of Boeing aircraft, following two fatal crashes of 737 MAX 8 jets in previous years that claimed the lives of 346 individuals. The ongoing scrutiny and investigations have put pressure on Boeing to address concerns and ensure the safety and reliability of its aircraft moving forward.