United Airlines was pushed into the red by Boeing and its ongoing quality issues, the airline said Tuesday. The company took a $200 million hit in the first quarter after the Boeing 737 Max 9 was grounded following the door plug incident aboard an Alaska Airlines flight.
United did not say whether or not it expects to be reimbursed by Boeing for the cost of the grounding of its 737 Max 9s for three weeks following the January 5 incident. But it did say that it would have been profitable without the cost of the grounding. The blow out of a door plug on an Alaska Airlines flight caused a three-week grounding by the Federal Aviation Administration of the 737 Max 9 model of jets, and brought fresh questions about the safety and quality of Boeing planes.
The airline had previously disclosed it had put a freeze on the hiring of pilots, and that it is asking pilots to accept voluntary unpaid furloughs due to the cut in the number of flights it is operating. United now says it no longer expects the Boeing 737 Max 10, the latest and longest version of the Boeing 737, to be delivered this year. That plane has not been certified to carry passengers as yet by the FAA.
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