United Airlines reported unexpected expenses today due to issues with the quality of Boeing aircraft. The company faced a $200 million loss in the first quarter after the Federal Aviation Administration (FAA) grounded Boeing’s 737 Max 9 models following safety concerns.
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This action came after an incident on January 5 where a door fell during a flight operated by Alaska Airlines using a Boeing aircraft. The FAA then mandated a three-week grounding period. United Airlines did not clarify if it anticipates reimbursement from Boeing for the costs incurred during this grounding period.
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With Boeing planes constituting approximately 80% of United Airlines’ fleet, including 86 737 Max 9 jets, the grounding significantly impacted the airline’s profits. The company has also faced other challenges like aircraft engine fires and wheel malfunctions, which have garnered more attention since the Boeing incidents. Company CEO Scott Kirby reassured customers about the company’s commitment to prioritizing employee safety. Additionally, the FAA announced increased surveillance on United Airlines in light of these events.
United Airlines Holdings, headquartered in Chicago, reported a loss of 15 cents per share, excluding special items. This result surpassed analysts’ expectations of a loss of 58 cents per share, as per a FactSet survey.
*UNITED AIRLINES SHARES EXTEND GAIN TO 13%, MOST SINCE 2020
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Revenue climbed nearly 10% to $12.54 billion, surpassing Wall Street’s forecast of $12.45 billion.
United’s forecast for the second quarter anticipates earnings between $3.75 and $4.25 per share, exceeding analysts’ average estimate of $3.73 per share.
