Boeing is paying Alaska Air more than $160 million

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Boeing has paid $160m (£126m) to Alaska Air to cover losses so far following the dramatic mid-air explosion in January.

Alaska said the payments will address lost profits in the first three months of the year and it expects to pay more in the coming months.

Controllers temporarily grounded nearly 200 Boeing 737 Max 9 planes after a door plug fell from an Alaska Air plane shortly after takeoff.

Thousands of flights were cancelled.

Airlines are now grappling with delivery delays as Boeing cuts production of new planes to address production and safety concerns.

In February, budget carrier Ryanair warned holidaymakers had to pay more because of delays.

United Airlines, which has warned investors of the financial blow, recently put pilots on unpaid leave due to delivery changes.

In January, Alaska warned of a hit of about $150 million. “Although we experienced some books following the accident and the grounding of the 737-9 MAX, both February and March ended above our original pre-grounding expectations,” the airline said.

Boeing did not comment, but warned earlier this year that it would spend at least $4bn (£3.16bn) more than expected in the first three months of the year.

The company has been in crisis since the January 5 emergency, in which passengers on an Alaska Airlines flight from Portland, Oregon to California escaped serious injury.

A preliminary report by the U.S. National Transportation Safety Board concluded that four bolts were not installed to securely attach the door to the plane.

Last month, Chief Executive Dave Calhoun said he would step down by the end of the year, the most senior leader to leave the company following the crisis.

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