How Grounded Boeing Planes are Impacting Alaska Airlines

Alaska Airlines said it would loss about $150 million in profit after the Boeing 737 Max 9 jet was grounded by the Federal Aviation Administration since January 5 due to a side panel blowing off a plane midflight, according to Reuters.

Alaska and United Airlines are the only domestic carriers to use that model of plane, and combined, they had about 170 airplanes grounded. The airlines are expected to slowly begin using the 737 Max 9 again this week.

The FAA said it would lift the grounding but stopped Boeing from producing and expanding its other 737 models.

The company did say it expects capacity growth to be below its initial estimates of three to five percent, due to “the grounding and the potential for future delivery delays,” with officials now expecting “capacity growth to be at or below the lower end of this range.”

Alaska hopes that an increase in labor and fuel costs from the last quarter of 2023 doesn't carry over into 2024. Alaska lost a modest $2 million in the fourth quarter.

The FAA has set its safety conditions for the return of the 737 Max 9.

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