Boyd Group International President Mike Boyd and CFRA deputy research director Stewart Glickman weigh the consumer and market implications from Boeing’s recent unrelated safety incidents.
Boeing has paid Alaska Airlines approximately $160 million in compensation following the Alaska Airlines Boeing Max 9 midair blowout in January.
According to a SEC filing, the money was “initial compensation” from Boeing “to address the financial damages incurred as a result of Flight 1282 and the 737-9 MAX groundings.”
The airline said that they lost “approximately $160 million” in their first quarter.
“As a result of the Flight 1282 accident and the Boeing 737-9 MAX grounding, we lost approximately $160 million in Q1 pretax profit, primarily comprising lost revenues, costs due to irregular operations, and costs to restore our fleet to operating service,” the filing said.
BOEING’S 737 FACTORY LOGS REVEAL DELAYS, PRODUCTION PRESSURE BEFORE DOOR PLUG BLOWOUT: REPORT
A Boeing 737 MAX 9 for Alaska Airlines is pictured along with other 737 aircraft at Renton Municipal Airport adjacent to Boeing’s factory in Renton, Washington, on January 25, 2024. (JASON REDMOND/AFP via Getty Images / Getty Images)
The filing said that the $160 million in cash, was “equivalent” to what the airline lost from the Jan. 5 blowout.
The airline said that Boeing is “expected” to provide “additional compensation” in the future. The exact amount and its terms are not known at this time.
Signage outside the Boeing Co. manufacturing facility in Renton, Washington, US, on Monday, Feb. 5, 2024. (David Ryder/Bloomberg via Getty Images / Getty Images)
The Jan. 5 incident prompted the Federal Aviation Administration to ground similar Boeing 737 Max 9 jetliners to allow for inspections, which resulted in thousands of flight cancelations.
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The door plug on a 737-9 MAX plane detached just minutes after Alaska Airlines Flight 1282 took off from Portland, Oregon, on Jan. 5 and reached 16,000 feet. The loss of the plug caused the cabin to depressurize, and a gaping hole sucked out cell phones and ripped a child’s shirt off his body.
