United Airlines Q1 2024 financial results show impact of Boeing 737 MAX 9 grounding.
The financial report is a scathing look at how the commercial aviation provider has been hit since a mechanical fault forced a plane to land.
United Records Financial Hit
The Federal Aviation Administration (FAA) acted quickly after an Alaskan Airline flight malfunctioned while in the air.
A door plug suddenly blew off, prompting air traffic controllers to ground the airline's Boeing 737 MAX 9. Thousands of flights were canceled and United's production line was shut down as the FAA investigated the horrific incident.
Today's financial announcement marks the company's first look back at a tumultuous year. The company “had a pretax loss of $164 million, an improvement of $92 million over the same quarter last year; adjusted pretax loss1 of $79 million, an improvement of $187 million on an adjusted basis compared to the same quarter last year. These earnings reflect the approximately $200 million impact from the grounding of the Boeing 737 MAX 9, without which the company would have reported a quarterly profit.”
United would pay Alaska Airlines $160 for grounding the 737 Max 9, which appears to have swallowed a significant amount of the profit the company could have booked this financial year.
The report would go into the FAA's decision and discuss the impact the airline's production delays have cost the company. The report states that “following the 737 MAX 9 grounding and significant production capacity constraints announced by the FAA at Boeing, the company now anticipates 61 narrow-body aircraft and 5 wide-body aircraft to be delivered in 2024.”
A financial year to forget for one of America's best-known brands and most trusted operators. The company will hope to put the mechanical faults behind them in the next financial year and hopes that the FAA will be satisfied with the rigor of their manufacturing process.
Image: Ideograms.
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