United Airlines Faces $200M Earnings Hit Due to Boeing 737-9 Grounding

United Airlines has attributed a significant $200 million impact on its first-quarter earnings to the grounding of its Boeing 737-9 fleet, following a mid-flight incident involving an Alaska Airlines-operated aircraft. The grounding, which lasted three weeks, was initiated after a cabin panel on the Alaska Airlines jet blew out during flight, leading to an emergency landing. This incident resulted in a $124 million loss for United in the quarter ending March.

The temporary grounding affected 171 Boeing 737-9 aircraft across various carriers, with United Airlines having to ground 79 of its fleet—more than any other airline. The disruption forced the cancellation of hundreds of flights, negating what would have otherwise been a profitable quarter for the airline.

The financial strain on United was exacerbated by ongoing restrictions imposed by the FAA on Boeing’s production capabilities, further reducing the number of new aircraft deliveries United could expect this year. Originally anticipating 66 new aircraft, this figure has now been cut by 25%, impacting the carrier’s operations and growth plans.

Moreover, recent whistleblower allegations have raised concerns over the production processes of Boeing’s 787 Dreamliners. The whistleblower, a long-time Boeing engineer, accused the company of taking production shortcuts that could potentially compromise the structural integrity of the aircraft. Boeing has denied these allegations, maintaining confidence in the safety of its 787 Dreamliner fleet.

These developments have prompted United Airlines to adjust its fleet expansion strategy and temporarily halt pilot hiring while offering voluntary unpaid leave to mitigate the operational disruptions.

Despite these challenges, United reported strong demand for its domestic and transatlantic routes and a resurgence in corporate travel spending, signaling a recovery trajectory in other areas of its business. However, the financial and operational setbacks linked to the Boeing 737 Max 9 grounding underscore the broader impacts of aircraft safety and production issues on airline profitability and growth.

Sources: AirGuide Business airguide.info, bing.com, theguardian.com