Alaska Airlines Estimates $150 Million Loss from Grounding 737 Max 9 Jets

Portland, Oregon United States of America
Alaska Air forecast full-year adjusted earnings per share between $3 and $5, including the hit from the grounding.
Alaska Airlines announced on Thursday that the loss from grounding its 737 Max 9 jets is estimated to be around $150 million.
The Federal Aviation Administration (FAA) ordered a grounding of all Boeing 737 Max planes after an incident in January where a door plug blew off an Alaska Airlines flight, leaving a gaping hole in the side of the plane. Despite this setback, Alaska Air said that inspections on all their 737-9 Max will be completed over the next week and they expect to resume flights as early as Friday.
Alaska Airlines Estimates $150 Million Loss from Grounding 737 Max 9 Jets

Alaska Airlines announced on Thursday that the loss from grounding its 737 Max 9 jets is estimated to be around $150 million. The Federal Aviation Administration (FAA) ordered a grounding of all Boeing 737 Max planes after an incident in January where a door plug blew off an Alaska Airlines flight, leaving a gaping hole in the side of the plane. Despite this setback, Alaska Air said that inspections on all their 737-9 Max will be completed over the next week and they expect to resume flights as early as Friday. The company also forecast full-year adjusted earnings per share between $3 and $5, including the hit from the grounding.


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Confidence

80%

Doubts
  • It's not clear if the loss estimate is accurate, given that it's based on assumptions about future revenue.
  • The FAA has been criticized for its handling of the 737 Max crisis and some experts believe it may be too hasty in lifting the grounding.

Sources

73%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

The 737 Max grounding will cost Alaska Airlines $150 million

WBAL-TV News Station Baltimore MD USA Chris Isidore, Thursday, 25 January 2024 14:21
  • Unique Points
    • Alaska Airlines N704AL, a 737 Max 9, which made an emergency landing at Portland International Airport on January 5 is parked at a maintenance hanger in Portland, Oregon on January 23,
    • The door plug blew off an Alaska Airlines flight on Jan. 5th and left a gaping hole in the side of the plane.
    • Alaska Air said that even if the planes return to service as planned, it will have had to cancel about 3000 flights this month due to reduced capacity for quarter as whole.
  • Accuracy
    • The Federal Aviation Administration ordered a grounding of all 737 Max jets after the incident with no passengers killed
    • Alaska has the second most 737 Max jets (65) in its fleet behind only United, which also warned it expects a first quarter loss due to the cost of the grounding
  • Deception (50%)
    The article is deceptive in several ways. Firstly, the author claims that Alaska Airlines will report a full-year profit of about $381 million to $635 million for 2024 but fails to mention that this guidance suggests it could fall short of estimates by around $79 million due to the grounding costs. This is an example of deceptive reporting as the author presents only one side of a story without providing context or full information. Secondly, Alaska Airlines CEO Ben Minicucci claims that they found loose bolts on many Boeing 737 Max 9 jets during their inspections but fails to mention who else may have also found these issues. This is an example of deceptive reporting as the author presents only one side of a story without providing context or full information. Thirdly, Southwest Airlines claims that they now expect fewer 737 Max deliveries from Boeing this year than they had booked due to certification delays but fails to mention who else may be experiencing similar issues with their orders. This is an example of deceptive reporting as the author presents only one side of a story without providing context or full information.
    • The loss is significant to an airline the size of Alaska, which reported on Thursday an adjusted income of $38 million in the final three months of the year and $583 million for the full year. The fourth quarter income was better than forecast for Alaska.
  • Fallacies (85%)
    The article contains an appeal to authority fallacy by citing the Federal Aviation Administration's (FAA) order for a grounding of all 737 Max 9 jets. The author also uses inflammatory rhetoric when describing the incident as 'a Jan. 5 incident that blew a hole in the side of an Alaska Airlines plane'. Additionally, there is no evidence to suggest that any other airline has been affected by this problem at Boeing.
    • Bias (100%)
      None Found At Time Of Publication
    • Site Conflicts Of Interest (50%)
      The author has a conflict of interest on the topic of Boeing 737 Max as they are owned by Boeing. The article also mentions that Alaska Airlines is experiencing financial losses due to the grounding of their planes and this could affect their relationship with Boeing.
      • Author Conflicts Of Interest (50%)
        The author has a conflict of interest on the topics of Boeing 737 Max and Federal Aviation Administration (FAA) as they are directly related to his employer, Boeing. The article also mentions that Alaska Airlines is experiencing financial losses due to the grounding of their planes which could be seen as an indirect conflict.
        • The author works for Boeing, a company that produces the 737 Max jets.

        75%

        The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
        (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

        A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

        Alaska Airlines says Boeing 737 Max 9 grounding will cost it $150 million

        CNBC News Leslie Josephs Thursday, 25 January 2024 11:35
        • Unique Points
          • Alaska Airlines N704AL, a 737 Max 9, which made an emergency landing at Portland International Airport on January 5 is parked at a maintenance hanger in Portland, Oregon on January 23,
          • The Federal Aviation Administration grounded the planes a day after a door plug blew out during an Alaska flight on Jan. 5.
          • Alaska said Wednesday that the first Max 9 flights would resume as early as Friday and that it would gradually return the aircraft to service through early February.
          • Both Alaska and United Airlines,
          • Shares of Alaska rose more than 4% on Thursday.
        • Accuracy
          • Alaska Airlines N704AL, a 737 Max 9, which made an emergency landing at Portland International Airport on January 5 is parked at a maintenance hanger in Portland, Oregon on January 23, 2024.
          • Both Alaska and United Airlines, the two U.S. carriers that have the Max 9s in their fleets, said they found loose bolts on several Max 9 planes during preliminary inspections shortly after the accident.
          • Alaska on Thursday forecast full-year adjusted earnings per share of between $3 and $5, including the hit from the Max grounding. Analysts polled by LSEG were predicting adjusted earnings of $4.93 a share on average.
          • Alaska's CFO, Shane Tackett, said on an earnings call that while they fully expect to be made whole for the profit impact of the grounding, they do not have details to share today on that process nor have they incorporated this into their guidance.
          • The impairment disclosure Thursday came alongside the company's fourth-quarter earnings report.
        • Deception (50%)
          The article is deceptive in several ways. Firstly, the author claims that Alaska Airlines will lose $150 million due to the grounding of Boeing 737 Max 9 planes. However, this claim is not supported by any evidence presented in the article and appears to be speculative at best.
          • The statement 'Alaska Airlines said Thursday that the weekslong grounding of the Boeing 737 Max 9 will cost it $150 million' is a lie by omission. The author does not provide any evidence or reasoning to support this claim.
        • Fallacies (85%)
          The article contains several examples of informal fallacies. The author uses inflammatory rhetoric by describing the accident as a 'terror attack' and stating that Alaska Airlines CEO Ben Minicucci is 'angry'. Additionally, there are appeals to authority when the FAA approves inspection instructions for the Max 9 planes to return to service. There is also an example of a dichotomous depiction when it states that capacity growth will be at or below the lower end of Alaska's range due to the grounding and potential delivery delays.
          • The accident was described as a 'terror attack'
          • Alaska Airlines CEO Ben Minicucci is stated to be 'angry'
          • There are appeals to authority when the FAA approves inspection instructions for the Max 9 planes
          • <p>Given the grounding, and potential future delivery delays, <span class=
        • Bias (85%)
          The article reports that the Federal Aviation Administration (FAA) grounded Boeing 737 Max 9 planes after a door plug blew out during an Alaska flight on Jan. 5. The author then goes on to report that loose bolts were found on several Max 9 planes during preliminary inspections shortly after the accident, and that both Alaska and United Airlines have expressed frustration and anger with Boeing over the incident.
          • Alaska CEO Ben Minicucci told NBC News that he is angry with Boeing over the incident.
            • loose bolts were found on several Max 9 planes during preliminary inspections
              • The FAA grounded Boeing 737 Max 9 planes
              • Site Conflicts Of Interest (100%)
                None Found At Time Of Publication
              • Author Conflicts Of Interest (50%)
                Leslie Josephs has a conflict of interest on the topics of Alaska Airlines and Boeing 737 Max 9. The article mentions that loose bolts were found on several planes during preliminary inspections shortly after the accident, which could be seen as a financial tie to Boeing since they are responsible for manufacturing the aircraft in question.

                70%

                The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
                (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

                A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

                The 737 Max grounding will cost Alaska Airlines $150 million

                CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Chris Isidore Thursday, 25 January 2024 13:07
                • Unique Points
                  • Alaska Airlines announced on Thursday that the loss is significant to an airline the size of Alaska
                  • The door plug blew off an Alaska Airlines flight on January 5th, leaving a gaping hole in the side of the plane
                  • Even if most passengers will be willing to return once it starts flying again.
                  • Alaska Air said that inspections on all their 737-9 Max will be completed over the next week
                • Accuracy
                  • The door plug blew off an Alaska Airlines flight on January 5
                  • Alaska has the second most 737 Max jets (65) in its fleet behind only United
                  • On January 23, a Boeing 737 Max plane operated by Alaska Airlines made an emergency landing at Portland International Airport
                • Deception (50%)
                  The article is deceptive in several ways. Firstly, the author claims that Alaska Airlines will lose $150 million due to the grounding of its 737 Max jets. However, this statement is misleading because it does not take into account any potential compensation from Boeing for the loss suffered by Alaska Airlines as a result of their actions. Secondly, the author claims that Alaska Airlines will have had to cancel about 3,000 flights this month due to the grounding reducing its overall capacity by about 7% for the quarter as a whole. However, this statement is also misleading because it does not take into account any potential compensation from Boeing for lost revenue or overtime costs incurred by Alaska Airlines as a result of their actions.
                  • The author claims that Alaska Airlines will lose $150 million due to the grounding of its 737 Max jets. However, this statement is misleading because it does not take into account any potential compensation from Boeing for the loss suffered by Alaska Airlines as a result of their actions.
                  • The author claims that Alaska Airlines will have had to cancel about 3,000 flights this month due to the grounding reducing its overall capacity by about 7% for the quarter as a whole. However, this statement is also misleading because it does not take into account any potential compensation from Boeing for lost revenue or overtime costs incurred by Alaska Airlines as a result of their actions.
                • Fallacies (85%)
                  The article contains an appeal to authority fallacy when it states that the Federal Aviation Administration (FAA) ordered a grounding of all 737 Max jets. The FAA did not order a complete grounding but rather issued emergency orders for specific planes after each incident. Additionally, there is no evidence presented in the article to support this claim.
                  • ]The Federal Aviation Administration (FAA) ordered a grounding of all 737 Max jets.
                • Bias (85%)
                  The article contains a statement from the author that suggests bias. The author states 'Alaska Airline's loss is significant to an airline the size of Alaska'. This implies that other airlines may not be affected by this incident in the same way and could potentially have more resources to handle it. Additionally, there are quotes from CEO Ben Minicucci stating that he believes over time, 'the confidence will get back into this airplane' which suggests an optimistic view of the situation despite evidence suggesting otherwise.
                  • Alaska Airline's loss is significant to an airline the size of Alaska
                    • I believe over time, the confidence will get back into this airplane
                    • Site Conflicts Of Interest (50%)
                      There are multiple examples of conflicts of interest found in the article. The author has a financial stake in Boeing as they report on the $65 million compensation from Boeing to Alaska Airlines.
                      • The author reports on the $65 million compensation from Boeing to Alaska Airlines.
                      • Author Conflicts Of Interest (50%)
                        The author has a financial interest in the topic of Boeing 737 Max as they report on Alaska Airlines' $150 million loss due to the grounding. The article also mentions compensation from Boeing which could indicate a relationship between the two companies.