Boeing’s safety issues cost United $200m, per earnings report

Ever wonder how much it costs when someone almost gets sucked out of an airplane, leading to a criminal investigation of a company already in hot water?

Make it a cool $200 million if you’re dependent on said company for just about anything.

That’s how much United Airlines, which reported its Q1 earnings on Tuesday, estimated the three-week grounding of Boeing 737 Max 9 jets hurt the company. It reported a pre-tax loss of $164 million, but without the Boeing grounding, the airline said it “would have reported a quarterly profit.”

In case you somehow missed the talk-of-the-watercooler news: Back in January, a cabin panel blew off a Boeing aircraft operated by Alaska Airlines, leading US regulators to temporarily ground 171 737 Max 9s.

While the accident happened on an Alaska Airlines flight, United relies heavily on Boeing planes; an estimated 80% of its mainline fleet comes from the manufacturer, per CNN.

Boeing was already in the spotlight for safety issues (in the worst way possible) after 346 people died in 737 Max 8 jets crashes in separate incidents in 2018 and 2019.

And United hasn’t had a stellar track record recently, either. After incidents like a wheel falling off a plane and an engine catching fire, the Federal Aviation Administration said it would watch United more closely, CNN reported.

Beyond the financial impact of the three-week grounding, Boeing’s troubles also impacted United’s aircraft delivery plans. The carrier trimmed its fleet delivery expectations, now anticipating to receive 61 narrow-body planes this year, a major dip from the 183 it had previously contracted for and the 101 it expected at the beginning of 2024.

“We’ve adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver,” United CEO Scott Kirby said in the earnings release. “And, we’ll use those planes to capitalize on an opportunity that only United has: profitably grow our mid-continent hubs and expand our highly profitable international network from our best in the industry coastal hubs.”

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