Alaska Air Group said on Thursday that Boeing paid initial compensation of around US$160 million in the first quarter to address the financial impact the airline suffered due to the temporary shutdown of 737 MAX 9 jets.
The payment is equivalent to lost profits resulting from an accident and grounding in the first quarter, Alaska said in a filing, adding that it expects additional compensation.
A plane operated by Alaska Air MAXIMUM 9 The jet suffered a cockpit panel explosion mid-air in January, prompting the U.S. aviation regulator to order the grounding of 171 jets for inspections. The grounding was suspended later that month.