Alaska Airlines Receives $162 Million in Compensation from Boeing, Reports Loss in Q1

Alaska Airlines (Boeing 737-8)

Alaska Airlines revealed that it has received $162 million in initial compensation from Boeing.

The payment is related to an incident involving the loss of a door plug during flight and the consequential grounding of the Boeing 737-9 aircraft. The Boeing 737-9 aircraft resumed operations on February 8, with a 5.5% decrease in supply.

Operating revenue for the first quarter of 2024 reached a record high of $2.2 billion, while net loss amounted to $132 million. The company anticipates a return to profitability in the subsequent quarters due to strong demand.

CEO Ben Minicucci stated, “The incident with flight 1282 and the subsequent grounding of a third of our fleet resulted in a significant economic impact totaling $162 million, all of which was compensated by Boeing. Excluding the aircraft-related issues, we were able to achieve a slight profit,” attributing the performance to the recovery in business travel on the West Coast and reorganization of the route network.

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