Analysts Estimate MAX 9 Grounding Impact

The grounding of the Boeing 737 MAX 9 is likely to impact 1Q earnings for airlines that fly the plane, Evercore ISI analysts write. United Airlines and Alaska Air could see wider than anticipated 1Q losses as the grounding cuts into flying capacity, the analysts say. Assuming the grounding continues through the end of January and including the impact of recent bad weather, they estimate United’s 1Q loss to widen to 73 cents per share from its previous estimate of a 32 cent per share loss, and Alaska’s to widen to 80 cents per share from the 37 cent per share loss they previous forecast. Still, they say airlines should have an easier time accommodating affected passengers as post-holiday demand slows down.

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