Boeing’s share price fell sharply in the first trading session on Monday after a portion of the fuselage of one of Boeing’s 737 Max 9 jets exploded aboard an Alaska Airlines flight on Friday night.
Boeing’s shares slipped nearly 9 percent in early trading. Spirit AeroSystems, which made the door plug that burst from the plane, fell even more dramatically, down 15 percent.
A cabin door plug broke mid-air on an Alaska Airlines flight departing from Portland, Oregon, exposing passengers to high winds and forcing an emergency landing. None of the 171 passengers and six crew members on board were seriously injured.
The Federal Aviation Administration on Saturday ordered US airlines to ground all their Boeing 737 Max 9 planes. The National Transportation Safety Board is investigating the incident.
United Airlines and Alaska Airlines, the largest users of the Max 9, canceled more than 350 flights on Monday, representing 8 percent of United’s schedule and 20 percent of Alaska’s. flight Aware, United’s stock rose higher Monday and Alaska’s stock fell about 4 percent.
Spirit AeroSystems said in a statement Said on Monday that it is “a committed partner with Boeing on the 737 program, and we will continue to work closely with them on this matter.”
Another version of the Max, the 737 Max 8, was involved in two crashes that killed hundreds in 2018 and 2019, leading to their worldwide grounding. And last month, Boeing urged airlines to inspect more than 1,300 delivered MAX planes for possible loose bolts in the rudder-control system.
While investors remained fearful, some analysts expected financial damage to Boeing and others to continue, based on what was seen from regulators and companies following the Alaska Airlines incident.
Analysts at Barclays said the grounding of the jets would have only a “small financial impact” because the Max 9 fleet was relatively modest, at 215 aircraft, 144 of which were operating in the United States.
Williams Blair analysts said the decline in Boeing’s stock is a buying opportunity. “While the Alaska Airlines door plug incident was catastrophic,” they wrote, “we do not believe it will have a major financial impact unless another incident occurs after the aircraft returns to service.”
A research report from Morningstar agreed that the impact would not be “material”, but noted that “the dramatic nature of the defect will have the impact of customers, regulators and the flying public once again questioning Boeing’s product stewardship.” will be.”