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Alaska Airlines says expects $150 mn hit from 737 MAX grounding

Alaska Airlines said Thursday it expects a $150 million hit from the Boeing 737 MAX grounding, which will limit its capacity growth in 2024. The airline, which executed an emergency landing on a MAX on January 5 following the mid-flight blowout of a panel on the jet, disclosed the estimates in a securities filing, saying capacity growth will be “at or below the lower end” of its prior estimate. US air regulators grounded 171 MAX 9 planes following the incident that led to an emergency landing in an episode that safety officials said could have been catastrophic. On Wednesday night, the Federal Aviation Administration announced a detailed inspection framework that would allow the grounded planes to return to service. Alaska Airlines, which has 65 planes affected by the grounding, expects to bring the jets back into service beginning Friday. “The first of our 737-9 MAX will resume flying on Friday, Jan. 26, with more planes added every day as inspections are completed and each aircraft is deemed airworthy,” the carrier said. “We expect inspections on all our 737-9 MAX to be completed over the next week.” In Thursday’s securities filing, Alaska said it expects a “gradual return” of the fleet through early February.

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