Chicago, April 17, 2024 – United Airlines reported a first-quarter loss on Tuesday due to the temporary grounding of several Boeing aircraft, while also announcing plans to lease Airbus planes amid Boeing delivery delays.
The three-week grounding of the 737 MAX 9 in January led to a $200 million revenue hit, resulting in a $124 million loss for the quarter. Despite the setback, revenue rose 10% to $12.5 billion.
The U.S. major airline was more impacted by the MAX 9 grounding than its rivals, which followed a January emergency landing of an Alaska Airlines flight after a fuselage panel cracked mid-air.
Boeing is expected to compensate airlines for the grounding, but United’s press release did not mention any such payments.
United said they enjoyed “strong” operational performance during the period, while adding that the demand environment remains “robust.”
However, citing the “737 MAX 9 grounding and the FAA’s announcement of significant production capacity constraints,” United now expects to take delivery of only 61 narrowbody aircraft in 2024, down from its January forecast of 101.
United said it has also signed letters of intent with two lessors to lease 35 new Airbus A321neo single-aisle aircraft in 2026 and 2027. Shares rose 4.7% in after-hours trading.
