Boeing’s stock price took a major hit after the US aviation regulator temporarily grounded a portion of its 737 MAX jets. The shares fell by 6.9% in response to the news.
- The temporary grounding came after an Alaska Airlines 737 MAX 9 jet experienced a fuselage issue, causing a piece to tear off during flight. This incident raised concerns about the quality and safety of the aircraft.
- The US Federal Aviation Administration (FAA) ordered the temporary grounding of 171 narrow-body MAX 9 jets that share a similar configuration to the affected aircraft. This move aims to ensure passenger safety and assess potential risks.
- While some analysts see the incident as a temporary setback for Boeing, others express concerns about a history of quality problems related to the 737 MAX family of aircraft.
- Spirit AeroSystems, a separate company from Boeing, manufactured and initially installed the fuselage part on the affected MAX 9 jet. The company’s shares fell by 7.9% in response to the incident.
- Initially, airline shares experienced a decline, but they have since recovered. Alaska Airlines saw a marginal decrease, while United Airlines, the other US carrier operating the 737 MAX jets, witnessed a 2.1% increase.
- Airbus, Boeing’s European competitor, has been expanding its market share since the two fatal 737 MAX crashes in 2018 and 2019. The company is set to announce that it delivered 735 jets last year, surpassing Boeing and remaining the world’s largest aeroplane maker for the fifth consecutive year.