Boeing Co (NYSE:BA, ETR:BCO) has paid Alaska Air Group (NYSE:ALK) US$160 million (£126 million) to compensate for losses relating to January’s mid-air door panel blowout.
Alaska added it expects more in the future, with the compensation set to cover lost profits over the first three months of the year.
Alaska was among several US airlines forced to temporarily ground models of Boeing's 737 MAX 9 jets in January, after a door panel fell from one of the operator’s flights early in the month.
Boeing has since faced growing scrutiny of its quality control practices, with additional checks said to have caused production of its bestselling 737 MAXs to slump.
Alaska had warned of a US$150 million hit from the groundings in January, but noted knock-on effects were not as bad as initially feared in a statement.
“Although we did experience some book away following the accident [...] February and March both finished above our original pre-grounding expectations,” the airline said.
Boeing previously said at least US$4 billion more would be spent over the first quarter than originally expected.
According to US regulators, four bolts designed to hold the door panel, used when an exit is not needed, had not been fitted to the Alaska jet involved in January.
A criminal investigation has since been launched into the incident, while Boeing also faces legal action from passengers on the flight.
“Boeing thinks it more urgent and important to pay those whose corporate profits were at stake, but not those whose lives were at stake,” Stritmatter Firm lawyer Daniel Laurence commented.
How much more Alaska receives from Boeing is unclear; the firm also facing calls for compensation over delayed deliveries, which had been mounting before the incident.
Ireland’s Ryanair Holdings PLC (LSE:RYA) had been due to receive 57 737 MAX 8s by June, for instance, but has since scaled back capacity estimates and warned passengers may face higher bills.
“I think we will get some modest compensation,” boss Michael O’Leary said in February, “but our focus is not getting compensation [...] our focus is getting the bloody aeroplanes”.