United Airlines suffered a $200 million loss in the first quarter, which it blamed on Boeing grounding its 737 MAX 9 aircraft after a tragic mid-air explosion.
Chicago-based United Airlines, which was forced to cancel hundreds of flights as a result of the three-week grounding, said it would have reported a quarterly profit had it not been for the disruption. The Guardian newspaper reported earlier.
Still, United said it “continues to expect full-year 2024 adjusted diluted earnings per share in the range of $9 to $11.” This is in line with FactSet analysts’ expectations for the airline’s full-year earnings of $9.14 per share.
The company also announced on Tuesday that it had “made several adjustments to its long-term fleet strategy,” including switching its Boeing MAX 10 aircraft order from 2025 to 2027 to the Boeing MAX 9.
United also assured that it has “the right to convert more Boeing MAX 10s into MAX 8 or MAX 9s as needed.”
Representatives for United did not immediately respond to The Post’s request for comment.
Boeing’s 737 MAX jets are most widely used by United Airlines, Southwest Airlines and Alaska Airlines, which operated the Boeing plane that suffered a door explosion at 16,000 feet on January 5th.
In the aftermath of the incident, which escalated into a full-blown crisis over Boeing’s safety and reputation, the Federal Aviation Administration delayed certification of the MAX 10 model, the largest member of the 737 MAX aircraft family, and ordered the aircraft manufacturer to prohibited from providing. From expanding production of the best-selling 737 MAX narrowbody aircraft.
After delays were reported in February, United Airlines Chief Financial Officer Mike Leskinen said United Airlines was slow to deliver its new MAX 10 aircraft, which in particular undermined the airline’s growth forecast. He said he was “deeply disappointed” in Boeing.
The CFO added that the delay cast doubt on the company’s ability to expand its domestic shipping capacity by almost 30% by 2026 under its United Next plan.
United Airlines was expecting upgraded aircraft, including 277 MAX 10 jets.
Additionally, the company has already lowered its 2024 forecast for MAX 8 deliveries from Boeing to 37 from 43 and said it expects to deliver 15 fewer MAX 9s this year.
United is highly reliant on Boeing, and said it plans to suspend pilot hiring in May and June until aircraft deliveries from Boeing resume, but that timeline remains unclear.
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Earlier this month, the company went a step further by asking pilots to take voluntary unpaid leave in May due to Boeing’s delivery delays, according to a memo sent to pilots.
The voluntary pilot leave program could be extended into the summer and fall.
It was not immediately clear what incentives United Airlines is giving its pilots to take a month off from work.
United isn’t the only airline to suffer from Boeing delivery delays: Alaska Airlines stated in regulatory filings. It lost “approximately $160 million” in pre-tax profit in the first quarter, “consisting primarily of lost revenue, costs associated with irregular operations, and costs to return our fleet to service.” said.
The Securities and Exchange Commission filing added that the $160 million in cash is “equivalent” to what the airline lost in the “horrific” incident on January 5.
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But Boeing later agreed to pay Alaska Airlines about $160 million as a “down payment” for “economic damages” on the plane that suffered the mid-air door explosion.
Boeing is also “expected” to provide “additional compensation” in the future, according to the document, but it was not immediately clear if or how much additional money the plane maker would deliver. Not revealed.
Southwest Airlines, the exclusive operator of the Boeing 737, also plans to reduce its pilot employment by 50% and flight attendant employment by 60% in 2024 compared to its original plan. CNN first reported.
This significant reduction is in response to Boeing’s plan to reduce deliveries to the Southwest by approximately 40%, reduce seat availability from previous plans, and provide approximately 1 percentage point fewer seats than planned. be.
