Alaska Airlines said on Thursday that Boeing had paid about $160 million to the airline in the first quarter as initial compensation to address the hit from the temporary grounding of 737 MAX 9 jets.
The payment is equivalent to lost profits in the quarter, the carrier said in a filing, adding it expects additional compensation.
An Alaska Airlines-operated MAX 9 jet experienced a mid-air cabin panel blowout in January, which led the U.S. aviation regulator to order a temporary grounding of 171 jets for inspections.
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“Although we did experience some book away following the accident and 737-9 MAX grounding, February and March both finished above our original pre-grounding expectations,” Alaska said.
The airline will now exclude the compensation from its calculation for first-quarter adjusted loss per share, which is expected to be $1.05 to $1.15. It had earlier planned to include the payment in its results.
Alaska and United Airlines bore the brunt from the grounding of 737 MAX 9 aircraft following the panel blowout that has sparked a manufacturing and reputational crisis at Boeing and supplier Spirit AeroSystems.
With information from Reuters
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