Alaska and United May See Little Financial Hit from 737 Max 9 Grounding

Alaska Airlines and United Airlines may face little more than the cost of a "severe weather event" from the temporary grounding of most Boeing 737-9s, a second-largest model in the 737 Max family, following an accident aboard an Alaska aircraft on Friday.

Raymond James analyst Savanthi Syth estimated Sunday that the cost of flight cancellations and passenger disruptions due to the suspension could be akin to a major snowstorm or hurricane that forces the cancellation of hundreds of flights over several days. Her estimate is based on the widely-held expectation that the Federal Aviation Administration will clarify what airlines need to inspect on 737-9s by the middle of the week, which would allow planes to begin returning to service.

Alaska cancelled roughly 160 flights on Saturday and 170 flights on Sunday as a result of th