Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

Alaska Air says Boeing issued $61 million in credit memos to address grounding hit

Published 05/03/2024, 07:46 AM
Updated 05/03/2024, 11:11 AM
© Reuters. Alaska Airlines commercial airplanes are shown parked off to the side of the airport in San Diego, California, Calinforia, U.S. January 18, 2024, as the the National Transportation Safety Board continues its investigation of the Boeing 737 MAX 9 aircraf
BA
-
ALK
-

(Reuters) - Alaska Air (NYSE:ALK) Group has received $61 million in supplier credit memos from Boeing (NYSE:BA) as additional compensation for the hit from a temporary grounding of 737 MAX 9 jets, the carrier said on Friday.

The airline had received $162 million in cash as compensation from the planemaker in the first quarter.

An Alaska Airlines-operated MAX 9 jet experienced a mid-air cabin panel blowout in January, which led to the U.S. Federal Aviation Administration grounding 171 of the aircraft for about three weeks.

The credit memos can be used to make future purchases at Boeing, Alaska said in its quarterly report on Friday.

Boeing is also compensating United Airlines — a prominent customer — to address the financial damages related to the grounding.

The incident had forced United to temporarily suspend service on all 79 of its 737 MAX 9 aircraft, which resulted in a $200 million hit in the first quarter.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.