NEW YORK - Boeing's 737 MAX 9 planes have begun to fly again after the January 5 Alaska Airlines scare, but the episode is expected to weigh on the aviation giant's finances for the foreseeable future.
Both Alaska and United Airlines resumed service on the MAX 9 over the weekend following a three-week grounding after a panel blowout necessitated an emergency landing. The incident has heaped scrutiny on Boeing and CEO David Calhoun.
Investors will get an initial appraisal of the financial consequences on Wednesday when Boeing releases fourth-quarter results.
Besides reporting another annual loss, Boeing is expected to withdraw commercial plane production targets that have been central to its medium-term financial outlook, which has included promises for much profitability in 2025 and 2026.
The Alaska Airlines episode is also expected to add to costs, including compensation for airlines. However, these items may not surface until later in 2024, analysts said.
Shares of Boeing have fallen nearly 18 percent since the troubled Alaska Airlines flight as investors bet on a toughened regulatory environment that slows plane deliveries.
Bank of America analysts downgraded Boeing this week, concluding that "materially increased regulatory scrutiny" from the Federal Aviation Administration (FAA) would result in a "forced slowdown."
The incident has also added to questions about Boeing leadership in light of sharp criticism of the company from airline customers.
Calhoun spent part of last week on Capitol Hill meeting with lawmakers who have also promised public hearings.
"They're going to have to demonstrate change," said Jeff Guzzetti, a former head of the FAA's investigation division.
Guzzetti said he expects management changes, but added, "I don't know what that looks like or who."