tl;dr
Following a mid-air incident, the US Federal Aviation Administration (FAA) and several airlines temporarily grounded 171 Boeing 737 Max 9 jets, resulting in an 8.43% drop in Boeing's shares. This is not the first time the 737 MAX has faced scrutiny, as it was previously grounded worldwide following ...
Following a mid-air incident, the US Federal Aviation Administration (FAA) and several airlines temporarily grounded 171 Boeing 737 Max 9 jets, resulting in an 8.43% drop in Boeing's shares. This is not the first time the 737 MAX has faced scrutiny, as it was previously grounded worldwide following two fatal crashes. The troubled model has a long history of issues dating back to a merger with McDonnell Douglas in 1997, and the recent incident may impact Boeing's stock in the long term.
Shares of Boeing tumbled 8.43% in premarket trading Monday after the Federal Aviation Administration (FAA) ordered a temporary grounding of 171 Boeing 737 Max 9 jets following a mid-flight incident where a piece of the jet ejected during an Alaska Airlines flight on Friday. Images shared on social media platforms showed a hole in the side of the jet and passengers using oxygen masks. Large-scale groundings by aviation regulators are uncommon, though they happened multiple times to Boeing's 737 MAX. The troubled model has been under scrutiny since facing a worldwide grounding five years ago following two fatal crashes that killed 346 people. The FAA ended the longest-ever grounding of a US airliner in November 2020, leading to an estimated $20 billion in penalties, compensation, and legal fees for the plane maker. Indirect losses amounted to over $60 billion. With this recent incident, could Boeing's stock face another long-term bearish trend?
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