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.
We have received initial compensation from Boeing to address the financial damages. As part of this compensation, Boeing paid Air Group approximately $160 million in cash during the first quarter.
We expect additional compensation from Boeing over losses from the groundings, though the details of those payments are currently confidential.
Airlines, including Alaska, said their inspections revealed quality control issues with the jets, including loose bolts. They also blamed Boeing for reputational damage they suffered.
#alaska-airlines #boeing-compensation #financial-impact #737-max-9-grounding #quality-control-issues
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