Boeing Pays Alaska Airlines $160 Million for Fuselage Blowout as MAX Delays Impact United's Growth Plans

Boeing paid Alaska Airlines $160 million in initial compensation for financial losses from the fuselage blowout incident earlier this year. Additional compensation is expected.

The fuselage blowout occurred in January shortly after Alaska Airlines Flight 1282 took off, causing cabin depressurization.

Boeing is under pressure from the FAA to address systemic quality control issues and certification for the 737 MAX has been delayed.

The delivery delays are impacting airlines like United, which has reduced 2024 growth forecasts and is offering pilots voluntary unpaid leave.

United planned to upgrade its fleet with 277 new MAX 10 jets but Boeing delays have raised doubts about meeting growth goals under its "United Next" plan.