by Donald Wood
Last updated: 8:50 AM ET, Tue March 12, 2024
Alaska Air Group announced its quarterly financial results would
not be as bad as initially expected following a January
incident that saw one of its planes lose a door midflight and the
subsequent grounding of several aircraft in the carrier’s fleet.
According to Reuters.com,
Alaska Air officials revealed that quarterly adjusted loss per share to start
2024 was 55-45 cents per share, which was far lower than the loss of $1.18 per
share estimated by financial experts.
One reason the airline believes its first-quarter forecast
will be stronger than expected is that the company received unspecified partial
compensation from Boeing related to the January 5 incident in which a door plug
ripped off a 737 MAX 9 plane mid-flight.
The impacted MAX aircraft were grounded, which impacted Alaska’s
flight schedules.
“Given recent strength in demand through Spring Break travel
periods and continued recovery of West Coast business travel, we now expect an
even greater year-over-year improvement in Q1 2024 profitability,” Alaska Air
officials said.
While the lower-than-expected losses are expected in the
first quarter, the airline said its full-year expectations are in “flux” due to
potential issues with plane deliveries as the Federal Aviation Administration (FAA)
and Department of Justice (DOJ) scrutinize Boeing and its operations.
Earlier this month, Alaska Airlines announced a new
partnership with Expedia designed to create a one-stop portal to book dream
adventures, dubbed Alaska
Vacations. Alaska Mileage Plan members can now bundle flights, hotels, car
rentals, and activities, all while earning miles and saving money.
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