United Airlines has reached an undisclosed financial agreement with Boeing to receive compensation for losses incurred in the first quarter of 2024 due to the grounding of its B737-9 fleet and delays in the certification of the B737-10, as stated in an SEC filing.
The airline reported a $124m net loss in the first quarter, with approximately $200m attributed to the MAX 9 grounding, impacting its financial performance. Compensation from Boeing will be in the form of credit memos for future purchases, reducing the cost basis of previously delivered MAX 9s and future deliveries.
United Airlines converted 110 B737-10 orders to B737-9s due to certification delays, maintaining flexibility to adjust more orders. United has firm commitments for 150 B787s, thirty-six B737-8s, 144 B737-9s (up from 34 at the start of the year), 167 B737-10s (down from 277 at the start of the year), 123 A321-200NX, fifty A321-200NY(XLR)s, and forty-five A350-900s.
