financetom
Business
financetom
/
Business
/
Alaska Air Group says 737 Max 9 grounding may hit long-term profit growth
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Alaska Air Group says 737 Max 9 grounding may hit long-term profit growth
Mar 28, 2024 3:36 PM

(Reuters) -Alaska Air Group ( ALK ) said on Thursday the lost capacity from the temporary grounding of its Boeing 737 Max 9 fleet may cause the company's long-term profit growth to be below its target range of 4% to 8%.

Earlier this month, Alaska Air ( ALK ) forecast first-quarter adjusted loss per share of 55 cents to 45 cents per share, compared with analysts' estimates for a loss of $1.18 per share, according to LSEG data.

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

The airline had also 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.

(Reporting by Aishwarya Jain in Bengaluru; Editing by Devika Syamnath)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2026 - www.financetom.com All Rights Reserved