Alaska Airlines 2024 forecast tops estimates after loss from Boeing Max grounding

Alaska Airlines forecast Q2 and full-year earnings well ahead of estimates on Thursday with executives predicting a strong peak travel season, despite a Q1loss stemming from a midair blowout of a door plug on a nearly new Boeing 737 Max 9 in January. Alaska received $162m from Boeing for the Jan. 5 accident, which caused the FAA to briefly ground the planes. Alaska said it expects additional compensation from the manufacturer. The Seattle-based carrier lost $132m, or $1.05 a share in Q1, down from a net loss of $142m, or $1.11 a share a year earlier. The accident has added additional regulator scrutiny on Boeing and slowed its deliveries of new Max planes, of which Alaska is a major customer. Alaska CEO Ben Minicucci stood by Boeing on Thursday’s earnings call but reiterated that he expects Boeing to fall short on its airplane delivery plan to the carrier this year. “We remain committed partners but we will hold Boeing to the highest bar for quality out of the factory and to that end we have enhanced our in-person oversight of our 737 production line,” Minicucci said. “Alaska [Airlines] needs Boeing, our industry needs Boeing and our country needs Boeing to be a leader in airplane manufacturing,” he said. Minicucci told CNBC’s “The Exchange” on Thursday that he was “encouraged” after Boeing’s leadership visited Alaska’s offices in Seattle on Monday to outline the manufacturer’s quality improvement plan. Boeing’s safety crisis has sparked criticism from lawmakers and its customers. Boeing’s CEO Dave Calhoun last month said he would step down by year’s end, part of a broader shakeup at the manufacturer amid frustration voiced by airline CEOs.<br/>