Alaska’s operational hit from Max grounding seen akin to a storm

For all the negative attention that Alaska Airlines has received, grounding its 737 Max 9 jets may have little more impact to the carrier’s operations than a bad winter storm.

Alaska had canceled 163 flights as of Sunday afternoon, or 21% of its total schedule, according to the tracking website FlightAware.com. The Federal Aviation Administration ordered Boeing Co.’s 737 Max 9 jets to be grounded for inspection after a fuselage section on a brand new Alaska Airlines jet blew out during flight. The carrier expects flights to be affected through at least midweek.

“I’d look at it as a really bad winter storm for operational impact,” said Savanthi Syth, a Raymond James analyst. By comparison, Delta Air Lines Inc. canceled about 20% of its flights for three days during a December 2022 winter storm, Syth said.

The effect will be somewhat muted by a lull in travel following the winter holidays, Syth said. “We’re heading into a kind of fairly quiet period of travel, and usually business travel doesn’t start back up until mid-January,” she said.

The FAA said Sunday that the Max 9 will remain grounded until the agency is satisfied that the jets are safe.

None of the 177 passengers and crew were seriously injured in the Jan. 5 event, when a portion of fuselage on Alaska Flight 1282 tore loose, leaving a gaping hole in the plane. It was able to return to Portland, Oregon, where it had departed en route to Ontario, California. The National Transportation Safety Board is investigating to determine the cause.

Alaska Air Group Inc. said in an emailed statement that the incident won’t affect its pending $1.9 billion acquisition of Hawaiian Holdings Inc.

Alaska’s fleet includes 65 737 Max 9s. Weather also affected flying in some cities on Sunday.

United Airlines Holdings Inc., with 79 Max 9 planes, will suffer the equivalent of “a bad day in Chicago,” one if its major airport hubs, said Bob Mann, president of consultancy R.W. Mann & Co. United said it has canceled about 180 flights Sunday due to the Max 9 issue.