- Wednesday, October 16, 2024
Boeing shares experienced a decline of 2.1% to $224.10 at the opening of the market on Tuesday after Alaska Air and United Airlines discovered loose parts on their inspected 737 MAX 9 jets.
Concerns in the Aviation Industry
Alaska Airlines faced an alarming incident last Friday when part of their aircraft's body detached just ten minutes after takeoff, causing a significant hole in the side of the plane. Fortunately, the pilot managed to make an emergency landing without any injuries.
The National Transportation Safety Board (NTSB) investigated the occurrence and identified that the detached part came loose from the set of stops designed to secure a door plug. The NTSB revealed that the bolts required to keep the plug in place were missing, but the exact cause of the part's movement remains unknown.
During an interview with the Financial Times, Ryanair's CEO, Michael O'Leary, expressed concerns about Boeing's quality control issues and remarked that delivery delays would impact their passenger numbers and profits.
Mitigation Measures and Flight Cancellations
Following the incident, the Federal Aviation Administration (FAA) temporarily grounded all 737 MAX planes over the weekend. Moreover, both United Airlines and Alaska Airlines reported additional flight cancellations on Tuesday compared to other airlines.
United Airlines canceled 191 scheduled flights and Alaska Airlines canceled 106 on Tuesday. Previously, United had canceled 263 flights, and Alaska had canceled 158.
Despite these challenges, Alaska Air shares managed to gain 0.3%, while United Airlines saw an increase of 1.6%. However, Spirit AeroSystems, a supplier of fuselages to Boeing, experienced a slip of 1.8% following an 11% decline on Monday.
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