Boeing Co. shares are experiencing an 8.2% decline in pre-market trading on Monday following the decision by the Federal Aviation Administration (FAA) to prohibit flights of 737 MAX 9 aircraft after an incident involving an Alaska Airlines plane last Friday.
Before this, the FAA instructed a temporary halt to flights of these planes in the U.S. airspace and their operation by American carriers, as reported by Interfax-Ukraine.
The FAA’s decision affects approximately 171 Boeing 737 MAX 9 aircraft. The European Union Aviation Safety Agency (EASA) has endorsed the FAA directive and also mandated the temporary suspension of Boeing 737 MAX 9 operations. However, the European regulator specified that currently, no EU country operates aircraft of this model.
The ban comes after an Alaska Airlines Boeing 737 MAX 9 made an emergency landing in Portland airport last Friday following the loss of part of the fuselage at an altitude of around 5 km. Fortunately, no passengers were harmed in the incident. The airline had received the aircraft from Boeing in November 2023.
As a result of this, Alaska Air Group Inc. has grounded all 65 of its 737 MAX 9 aircraft, leading to a 4.5% decrease in the company’s shares. United Airlines Holdings’ stock value has also dropped by 3%, as the airline suspended flights for its 79 Boeing 737 MAX 9 planes.
Boeing has announced a special meeting on Tuesday to discuss safety measures in response to the incident.
