HomeBusinessUnited Airlines facing financial losses due to Boeing's grounding of planes.

United Airlines facing financial losses due to Boeing’s grounding of planes.

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A major US airline is anticipating financial losses between January and March due to the grounding of Boeing 737 Max 9 jets following a mid-flight incident where an unused emergency exit door broke away. This incident has led to the Federal Aviation Administration (FAA) grounding 171 Boeing 737 Max 9 jets, forcing airlines like United and Alaska to cancel hundreds of flights as inspections are carried out. The US airline, United, revealed that it expects these planes to remain grounded until January 26, impacting its financial projects for January as it cannot fly these planes during this period.

Both United and Alaska Airlines have had the most Boeing 737 Max 9 jets in their fleet, with the former having to cancel flights due to the grounding of 79 such aircraft. The affected Alaska Airlines flight from Portland, Oregon to Ontario, California, experienced an emergency descent after the unused emergency exit door blew out. The FAA is prioritizing safety over timelines in assessing when these aircraft can return to service, with Boeing pledging to enhance the quality of inspections in its manufacturing processes post-incident. These developments have impacted the profits of United Airlines, which reported flat pre-tax profits of $3.4bn for the entire 2023 and is now expected to address the safety inspections of the grounded planes in an upcoming call with analysts and investors.

In summary, the grounding of Boeing 737 Max 9 jets in response to a mid-flight incident involving an unused emergency exit door has affected the financial performance and operations of US airlines like United and Alaska. The impact of the grounding has led to the cancellation of hundreds of flights, and the postponement of flying these planes until the upcoming week, influencing the financial projections of these airlines for January. The incident has prompted a safety-first approach from the FAA, resulting in Boeing’s commitment to enhancing the quality of inspections in manufacturing processes. United Airlines reported a slight pre-tax profit for 2023 and will address the impact of inspections on its grounded planes in an upcoming call, while Alaska and Boeing are expected to release their financial results in the coming weeks.

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