United Airlines reports $124 million loss in a quarter marred by grounding of some Boeing planes
United Airlines says it lost $124 million in the first quarter, and it's blaming Boeing
United Airlines said Tuesday that it lost $124 million in the first quarter, which it blamed on a three-week grounding of all Boeing 737 Max 9s after a panel blew off an Alaska Airlines Max jetliner in January.
United indicated it would receive far fewer new planes from Boeing this year than it expected, and it has begun leasing Airbus jets to fill out its fleet.
Financial results released by the airline pointed to continued strength in demand for air travel, especially within the United States and across the Atlantic. United forecast better-than-expected profit in the second quarter.
Shares of United rose 5% in after-hours trading.
The airline had its own difficulties in the first three months of the year. Its CEO reassured travelers that United is safe despite a series of events that included a piece of aluminum skin falling off one plane, a tire dropping off another during takeoff, and an engine fire. The Federal Aviation Administration stepped up its oversight of the carrier.
United was hobbled during most of January by the temporary loss of its 79 Max 9 aircraft. The airline was forced to cancel hundreds of flights and switch planes on many others.
United said the grounding cost it $200 million — enough to turn a small profit into a loss for the quarter.
Alaska, the only other U.S. carrier using the Max 9, has reported getting $160 million in «initial compensation from Boeing for the grounding. A United official declined to discuss negotiations with the aircraft maker.
Boeing’s difficulty in producing and delivering Max jets means that United now expects to receive 61 of them this year, down about two-thirds from a few months
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