April 18 (Reuters) - Alaska Air Group ( ALK ) forecast a

better-than-expected profit for the current quarter on Thursday,

driven by strong travel demand and expectations for a strong

summer season.

The airline, the operator of the Boeing ( BA ) plane that

suffered a mid-air cabin blowout in January, also reported a

smaller loss in the first quarter, despite a $162 million impact

from the more-than-two-week grounding of its 737 MAX 9 aircraft.

Its loss shrank to $132 million, or $1.05 per share, in the

first quarter, from a loss of $142 million, or $1.11 per share,

a year ago. Its operating revenue rose 1.6% to $2.23 billion.

The Seattle, Washington-based airline would have reported an

adjusted profit of about $5 million for the quarter, absent the

groundings of its MAX 9 jets.

To address the financial damages, Alaska Air ( ALK ) received $162

million in initial cash compensation from Boeing ( BA ), which has been

excluded from its first-quarter results.

Many airline executives have highlighted robust travel

demand across both domestic and international routes during the

upcoming summer season.

Alaska Air ( ALK ) forecast a second-quarter profit of $2.20 to

$2.40 per share, compared with analysts' average estimate of

$2.12 per share, according to LSEG data.

"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," CEO Ben Minicucci said.

The airline also said it has enhanced quality oversight at

Boeing's ( BA ) production facility to validate the work and quality of

its aircraft as they progress through the manufacturing process.