United Airlines (UAL) to receive compensation from Boeing (BA) over MAX issues

On April 14, 2024, United Airlines (NASDAQ: UAL) entered into confidential arrangements with Boeing (NYSE: BA) with respect to compensation for financial damages incurred in first quarter of 2024 due to the Federal Aviation Administration grounding of the Boeing 737 MAX 9 aircraft, and a confidential agreement to accommodate certification delays for the Boeing 737 MAX 10 aircraft. The compensation provided by Boeing for the grounding damages and in connection with rescheduling deliveries is in the form of credit memos for use on future purchases from Boeing. The Company plans to account for these arrangements as a reduction to the cost basis of the previously-delivered Boeing 737 MAX 9 aircraft and future deliveries of the MAX 9 and MAX 10 aircraft, which is expected to reduce future depreciation expense associated with these aircraft.

You May Also Be Interested In

• United Airlines (UAL) PT Raised to $153 at UBS Ahead of Q2 Results
• Tech Mahindra expands cloud partnership with Telefónica Germany
• Zeta Surgical begins TMS navigation treatments at Hope Therapeutics clinics