(Reuters) -Alaska Air Group ( ALK ), the operator of the 737 MAX 9 jet that experienced a mid-air cabin panel blowout, forecast a narrower-than-expected first-quarter loss on Tuesday due to strong travel demand.

The company forecast a quarterly adjusted loss per share of 55 cents to 45 cents per share, compared with the average analysts' expectation of loss of $1.18 per share, as per LSEG data.

The first-quarter forecast reflects an unspecified partial compensation the carrier received from Boeing ( BA ) following the mid-air blowout earlier this year and a 30 cent per share impact from the temporary grounding of MAX 9 jets after the incident, Alaska Air ( ALK ) added.

"Given recent strength in demand through Spring Break travel periods and continued recovery of West Coast business travel, we now expect an even greater year-over-year improvement in Q1 2024 profitability," the company said in a filing.

But, the airline said its full-year capacity expectations were still in a "flux" due to uncertainty surrounding aircraft delivery timings stemming from increased Federal Aviation Administration and Department of Justice scrutiny of Boeing ( BA ) and its operations.