FAA Orders 737 Max Jets to be Grounded Following Alaska Airlines Blowout — Boeing Stock Drops

 

Boeing stocks are plummeting after the Federal Aviation Administration grounded some 737 Max jets following the blowout on an Alaska Airlines flight.

The Alaska Airlines flight carrying 174 passengers had to make an emergency landing in Portland on Friday when the plug door blew out.

Alaska Airlines Takes Drastic Action: Boeing 737 Max 9 Fleet Grounded Following Terrifying Midair Window Blowout
pic.twitter.com/MKD1St7Fka

— SIKAOFFICIAL (@SIKAOFFICIAL1) January 8, 2024

No passengers were injured, but footage of the frightening ordeal quickly went viral.

The FAA has now grounded all planes with the same type of plug door made by Spirit AeroSystems. 

Approximately 171 planes worldwide will be taken out of service.

The FAA is requiring immediate inspections of certain Boeing 737 MAX 9 planes before they can return to flight.

Safety will continue to drive our decision-making as we assist the @NTSB’s investigation into Alaska Airlines Flight 1282. – @FAA_Mike pic.twitter.com/YsuQimg2pq

— The FAA ✈️ (@FAANews) January 6, 2024

Boeing has said that it supports the decision.

“Safety is our top priority and we deeply regret the impact this event has had on our customers and their passengers. 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,” Boeing said in a statement.

“In addition, a Boeing technical team is supporting the NTSB’s investigation into the Jan. 5 accident. We will remain in close contact with our regulator and customers,” the statement continued.

Unfortunately for Boeing, the market is not as supportive.

“Boeing shares were marked 8.4% lower in premarket trading to indicate an opening bell price of $228.06 each,” The Street reported on Monday morning. “Spirit AeroSystems shares, meanwhile, plunged 19% in the premarket and are set to open at $25.69 each.”

The report added, “Boeing, which hasn’t posted a profit since June 2021, will report fourth-quarter earnings on Jan. 31, with investors looking for a loss of 93 cents a share on revenue of just over $21 billion.”