Sat. Mar 2nd, 2024

Boeing's stock at its lowest since two months

Open in full screen mode

Boeing 737 MAX inspections and slowdown in planned deliveries weigh on company's financial performance.

Agence France-Presse

The action Boeing's shares plunged nearly 8% at the close of the New York Stock Exchange on Tuesday, as increased scrutiny after a plane's door unhooked in mid-flight could weigh heavily on its financial performance. /p>

The stock is at its lowest level in two months.

A Wells Fargo analysis report released Tuesday warned that an audit by the Federal Aviation Administration (FAA) opens a whole new box of Pandora, and that multiple consequences are to be expected.

Wells Fargo downgraded Boeing's stock in part due to a slowdown in planned 737 MAX deliveries in 2024, which will reduce free cash flow by $2 billion, compared to an earlier analysis, it says .

Given Boeing's recent track record and the greater incentive of FAA to detect problems, we believe the chances of a flawless audit are low.

A quote from Wells Fargo

A door came loose on January 5 from the cabin of a Boeing 737 MAX 9 during an Alaska Airlines flight that was scheduled to connect Portland, Oregon, to Ontario, California. but the incident only caused a few minor injuries and the plane was able to land safely at its original airport.

Loading in progressOttawa wants to reduce the number of foreign students admitted to certain provinces

ELSEWHERE ON NEWS: Ottawa wants to reduce the number of foreign students admitted to certain provinces

The FAA has kept Boeing 737 MAX 9s on the ground until further notice , and launched an investigation into the incident, the first major in-flight safety issue on a Boeing plane since fatal 737 MAX crashes in 2018 and 2019 that led to the plane's lengthy grounding.

Open in full screen mode

A US Transportation Safety Board inspector observes the torn door on the Alaska Airlines 737 Max 9.

The agency said these aircraft would not be allowed to fly again until it approved a thorough and rigorous inspection and maintenance process.

< p class="StyledBodyHtmlParagraph-sc-48221190-4 hnvfyV">As of Friday, United Airlines canceled flights on its 737 MAX 9s through Jan. 16, and an airline spokesperson said Tuesday that the cancellations had been extended until January 17.

In addition, the Chinese airline China Southern Airlines will inspect its new deliveries of these aircraft, this which could extend delivery times, according to the Wall Street Journal.

In addition, Boeing on Tuesday named the ;retired Admiral Kirkland Donald as advisor to Boeing Chief Executive David Calhoun to undertake a comprehensive review of Boeing's quality programs and practices.

By admin

Related Post