The Strategist

Alaska Airlines receives $160 million from Boeing for a hatch plug that broke off

04/05/2024 - 03:15

Alaska Airlines announced that it has received the first payment from Boeing related to an early January incident. The American airline's 737 MAX 9 aircraft then experienced cabin depressurization as a result of the emergency exit hatch plug falling off.

Anna Zvereva
Anna Zvereva
The airline lost around $160 million in potential income in the first quarter as a result of the event, it stated. These include the cost of fixing the aircraft, lost income, and expenses from missed flights. Although Boeing has already paid back that sum in cash for the first quarter, the airline anticipates further compensation payments.

Alaska Airlines itself downgraded its prediction for its first-quarter earnings. As opposed to the earlier projected loss of $0.45–0.55 per share, the company now projects a loss of $1.05–1.15.

Following the Alaska Airlines incident, it was found that numerous Boeing 737s had incorrectly installed hatch coverings. It was discovered that the airplanes had additional fuselage issues. David Calhoun, the CEO of Boeing, and a number of other senior executives resigned from the business at the end of March. Boeing calculates that it lost between $4 and 4.5 billion as a result of the incident.


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