Boeing Shares Plummet After FAA Grounds 737 MAX 9 Fleet

By
Fatima Attarwala
Fatima Attarwala
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Fatima Attarwala is a business news writer and editor with a decade of experience researching, analyzing, and commenting on issues influencing the economy.
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Published January 08, 2024
Boeing

John Keeble / Contributor / Getty Images

KEY TAKEAWAYS

  • Boeing shares fell after the Federal Aviation Administration grounded Boeing 737 MAX 9 aircraft for inspections amid safety concerns.
  • The emergency directive followed a mid-air incident involving an Alaska Air Boeing 737 Max 9.
  • The incident adds to a series of manufacturing problems related to Boeing's 737 MAX jets.

Boeing (BA) shares tumbled over 8% in early trading Monday after the Federal Aviation Administration (FAA) temporarily grounded certain Boeing 737 MAX 9 aircraft for inspections.

The FAA's directive comes after an incident Friday in which an Alaska Airlines (ALK) Max 9 lost a panel mid-flight, forcing an emergency landing.

About 171 Boeing aircraft in the U.S. or operated by U.S. airlines outside the U.S. are impacted by the FAA's investigation to address potential door safety issues before resuming flights. Each inspection will take about four to eight hours per aircraft, according to the requirements of the Emergency Airworthiness Directive.

Boeing said it supports the investigation. "We agree with and fully support the FAA's decision to require immediate inspections of 737-9 airplanes with the same configuration as the affected airplane," the company said in a statement.

The incident was the latest in a series of manufacturing issues related to Boeing 737 MAX aircraft. Just last month, Boeing alerted authorities and airlines about potential loose bolts in the rudder system of new 737 MAX planes.

Shares of Boeing were down 8.8% at $227.19 per share as of about 10 a.m. ET Monday. Airlines that use Boeing aircraft lost ground as well, with Alaska Air Group shares down 4.4% at $36.30 per share and United Airlines trading 0.6% lower at $41.50 per share.

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  1. Federal Aviation Administration. "FAA Statement on Temporary Grounding of Certain Boeing 737 MAX 9 Aircraft."

  2. Boeing. "Boeing Statement on 737-9 Inspections."

  3. AP. “Boeing asks airlines to inspect 737 Max jets for potential loose bolt.”

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