March 12 (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.