The ban on certain Boeing 737 MAX 9s in the United States is expected to hit Alaska Airlines' accounts by $150 million after one of its planes suffered an in-flight incident in early January.
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It plans a “gradual return” of its fleet – 65 affected aircraft – starting Friday and continuing into early February, it said Thursday.
This suspension “will have a significant operational and financial impact on our operations, with approximately one-third of our capacity impacted in January,” Alaska Airlines chief Ben Minicucci said during an audio conference with analysts.
The group estimates that 3,000 flights were canceled in January.
“In addition, we believe it is likely that the delivery of several aircraft will be delayed, which will further impact our capacity for the full year,” he continued, recalling that he had initially expected an increase of 3% to 5% compared to 2023.
According to the group, in this context it should only go to the lower end of this range.
On January 5, an in-flight cap holder came loose in the cabin of a Boeing 737 MAX 9 flying from Portland, Oregon to Ontario, California.
Airlines have the option to block a door if the number of existing emergency exits is sufficient in relation to the number of seats on the aircraft. This modification was made to 171 of the 218 Boeing 737 MAX 9s delivered to date.
The American Aviation Authority (FAA) has banned the aircraft configured in this way from flight operations until further notice.
The regulator said on Wednesday evening that it had put in place a “comprehensive” maintenance and inspection program to allow these planes to return to the air.
This includes, in particular, checking specific fasteners and visual inspections of all cap holders and their components, as well as correcting any damage or abnormal conditions.
Only when the established plan is completed “can the aircraft be returned to service,” the FAA said, without giving a date.
12 hours by plane
According to Alaska Airlines, these inspections take approximately twelve hours per aircraft.
Shortly after the FAA's announcement on Wednesday evening, the chief operating officer of United Airlines – which has the largest fleet of the model (79 aircraft) – Toby Enqvist, sent a message to the company's employees.
“We will not return any MAX 9 aircraft to service until the thorough inspection process is complete,” he assured. “We are preparing to resume flight operations from Sunday,” he said.
Publishing its 2023 year-end results on Monday evening, the group said it expects a net loss of between 35 and 85 cents per share in the first quarter of 2024 and expects flights to be suspended until January 31.
According to a spokesman, the company canceled around 170 flights per day between January 6th and 27th. The first scheduled flight is planned for Sunday, but it is possible that a MAX 9 will be mobilized from Friday if necessary, he indicated.
For Scott Kirby, his boss, this suspension is “the straw that broke the camel’s back.”
Tired of “Boeing's continuing production problems,” he announced Tuesday the withdrawal of the 737 MAX 10 – the largest model in the 737 family, whose FAA certification has been delayed – from United's flight programs.
This aircraft made its first flight in June 2021.
United expected to have 277 MAX 10s and options for 200 more aircraft by the end of the decade.
“It's a fantastic aircraft, but we can't rely on it,” lamented Mr. Kirby.
Southwest confirmed this on Thursday, saying it had not included the 737 MAX 7 in its 2024 flight schedule, although it expected 27 units. It has ordered 307 copies, which are to be delivered by 2031.
As the smallest model in the 737 MAX family, it is also awaiting certification. The first flight took place in 2018.
Boeing has received 391 gross orders for the MAX 7 and 1,180 for the MAX 10, according to its website.
At around 6:15 p.m. GMT, Boeing shares fell 6.06% on the New York Stock Exchange – losing a fifth of their value since January 5. Southwest lost 0.61%, while Alaska and United gained 5.33% and 3.48%, respectively.