Alaska Airlines has this week reported a Q1 loss of $132m, and has highlighted the compensation received from Boeing.
The airline has had a shaky start to the year, which has not been helped by what happened in January with flight 1282.
Without further ado, let’s get into it…
The Numbers from Alaska Airlines…
Alaska Airlines reported a $132m net loss for the first quarter of this year.
This has been reduced slightly compared to 1Q23, where the loss was recorded at $142m.
Revenues rose 2% to $2.2bn, with cargo revenue rising 10% to $64m. Operating expenses rose 1% to $2.4bn.
Commenting on the results was Ben Minicucci, the CEO of Alaska Airlines:
“I want to recognize Alaska’s employees for their uncompromising prioritization of safety, for taking great care of our guests, and for delivering strong performance in the first quarter”.
“Despite significant challenges to start the year our results have far exceeded initial expectations.”
“Thanks to thoughtful capacity planning, network optimization, and diligent cost control, we are well positioned to carry our strong performance into the second quarter and beyond.”
Compensation from Boeing…
In their financial results, Alaska Airlines were keen to note the impact of the Boeing 737 MAX disruption.
Within this, there was compensation that was handed to the airline, of which the following was said in a statement:
“Alaska Air Group’s first quarter operation and results were significantly impacted by Flight 1282 in January and the Boeing 737-9 MAX grounding which extended into February.”
“The Company has received $162 million in initial cash compensation from Boeing to address the financial damages incurred during the first quarter.”
This will, of course, be welcomed by the airline, but has caused significant headaches for them.
Overall…
In conclusion, the numbers from Alaska Airlines aren’t great, but it is not surprising given the circumstances.
For the airline, the compensation will help financially in the short-term, but overall performance will need to improve.
Furthermore, all eyes will be on whether anymore developments will come from them from this.
But for now, all eyes will be on what comes next for the airline.
Click the banner to subscribe to our weekly newsleter.
Click the photo to join our WhatsApp channel so then you can stay up to date with everything going on in the aviation industry!
