Despite having a
subpar financial first quarter, mostly due to the ripple effect from the
January 5 incident in which a door panel fell off one of its planes made by
Boeing, Alaska Airlines is looking toward the future.
"I want to recognize Alaska's employees
for their uncompromising prioritization of safety, for taking great care of our
guests, and for delivering strong performance in the first quarter," said
CEO Ben Minicucci. "Despite significant
challenges to start the year our results have far exceeded initial
expectations. Thanks to thoughtful capacity planning, network optimization, and
diligent cost control, we are well positioned to carry our strong performance into
the second quarter and beyond."
Alaska Air Group, parent company
of the carrier, said
that Alaska Airlines suffered a first-quarter loss, mostly due to the repercussions
from the door panel blowout and subsequent production delays by Boeing. Because
of that, Alaska Airlines lost $162 million although it has been compensated by
Boeing.
It likely would have
turned a profit in the first quarter, if not for all of the issues.
Still, the aftereffects
are likely to last for a while.
For instance, the airline
was expecting 23 deliveries of new planes this year. It previously said those
deliveries will be more around 10 than nearly two dozen. That’s in addition to
having to ground its fleet of Max-9 planes for weeks.
"We are prioritizing
quality and safety first," Tackett told Reuters. "And (production)
rate, it just isn't one of our priorities right now."
That’s all well and good,
and it comes with good intentions, of course, but it also comes at a time when
air travel is expected to peak during the summer at record levels.
Alaska
operates an all-Boeing fleet. The airline expects its 2024 capacity to grow at three
percent or less compared to a year ago. Tackett said while there is no update
on the certification timeline, Alaska expects further delays in the MAX 10
program. Naturally, government regulators are reluctant to certify the Max 10
when the Max 9 has had so many problems. Alaska Airlines is seeking additional
compensation from the troubled airplane manufacturer. Tackett said the
additional compensation would likely come in the form of credits on new
airplane purchases rather than cash.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
