Live Chat

Alaska Airlines

Boeing share price has tumbled close to 9% since the 737-9 Max incident occurred

Boeing shares continued their fall on Thursday, closing at $222.66 (down 2.27% on the day) after the U.S. Federal Aviation Administration said it formally launched an investigation into whether the aerospace giant failed to complete safety tests on some of its products.

The probe follows an cabin panel blowout on Alaska Air Flight 1282 in mid-air last week, which prompted an emergency landing.

“This investigation is a result of an incident on a Boeing Model 737-9 Max where it lost a ‘plug’ type passenger door and additional discrepancies,” the FAA said in a statement. “Boeing’s manufacturing practices need to comply with the high safety standards they’re legally accountable to meet. This incident should have never happened and it cannot happen again”.

“We will cooperate fully and transparently with the FAA and the NTSB on their investigations," Boeing said in a statement.

Boeing, along with multiple air carriers, is currently conducting inspections on planes with a similar configuration to the affected flight. However, indications suggest that the grounding of 737 MAX 9 planes may remain in place for some time.

Boeing stock, which trades on the NYSE under the ticker BA, declined by 1.1% during afternoon trading, reversing earlier gains of up to 0.2%. This week, Boeing shares have tumbled by close to 9% in the aftermath of the Alaska Airlines incident.

The S&P 500 index has risen by close to 2% over the same period, while the Dow Jones Industrial Average (DJIA), where Boeing is a key component, has struggled to find similar gains (+0.72%) due to the uncertainty surrounding the aerospace giant.

Alaska Air shares closed Thursday trading down 0.19%, while Spirit AeroSystems, the manufacturer of the MAX 9 fuselage for Boeing, fell by 5.96%, closing at $27.60. Spirit shares have shed close to 12.5% of their value heading into Friday.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Currency Search
Currency
Index
Shares
ETFs
Bonds
Crypto
Commodity

Instrument

Search
Clear input
Occidental
Siemens
Morgan Stanley
GSX Techedu
Marston's
Alibaba
Skillz Inc
Macy's
Lemonade
Lululemon
Plug Power
Amazon.com
Verizon
Thermo Fisher
Mondelez
General Motors
LVMH
IAG
Cinemark
PETROCHINA
Royal Bank Canada
Anglo American
F5 Networks
Nikola Corporation
Zoom Video Communications
Air France-KLM
Comcast
UniCredit
The Cheesecake Factory
Barrick Gold
Bayer
Toro
Kuaishou
Gen Digital Inc
Tilray
Xiaomi
SMCI
Wish.com Inc
Adobe
DISNEY
Coinbase Inc
UiPath Inc
T-Mobile
Rio Tinto
Schlumberger
Invesco Mortgage
Hammerson
Volkswagen
Sartorius AG
ROBLOX Corp
ChargePoint Holdings Inc
UPS
Pinterest Inc
Continental
Jumia Technologies
Medtronic
PayPal
Twilio
Freeport McMoRan
UnitedHealth
SIG
Tesla
Lyft
Boeing Co
Annaly Capital
Santander
Teladoc
Li Auto
CrowdStrike Holdings
Deere
Fedex
Naspers
ProSiebenSat.1
Bilibili Inc
Costco
New Oriental
NVIDIA
Iberdrola
Gilead
American Express
Apple
Airbus
GoPro
Chevron
HSBC HK
Two Harbors Investment aration
easyJet
Inditex
BlackBerry
Anheuser-Busch Inbev
Deliveroo Holdings
Hubspot
Applied Materials
GameStop
British American Tobacco
Trade Desk
McDonald's
AMC Entertainment Holdings
Adidas
AIA
Bristol Myers
Novavax
TUI
Fresnillo
Shell plc (LSE)
Nasdaq
Ceconomy
Lithium Americas Corp
Rivian Automotive
Qorvo
MercadoLibre.com
Coca-Cola Co (NYSE)
HDFC Bank
Roku Inc
Infinera
Arista
Total
JnJ
Dave & Buster's
PG&E
ON Semiconductor
Diageo
XPeng Inc
ASML
Vodafone
Airbus Group SE
Campari
Telecom Italia
Glencore plc
HSBC
ZIM Integrated Shipping Services Ltd
Kraft Heinz
Spotify
Aurora Cannabis Inc
Etsy
Goldman Sachs
Norwegian Air Shuttle
Abbott
Snap
Linde PLC
Blackstone
Cellnex
Tencent
Barclays
Virgin Galactic
JP Morgan
Allianz
RTX Corp
Taiwan Semi
Wal-Mart Stores
Intel
DoorDash
Wayfair
SONY
II-VI
Norwegian Cruise Line
BioNTech
Palantir Technologies Inc
CNOOC
Cisco Systems
Electrolux
ALIBABA HK
Robinhood
Vonovia
British American Tobacco
SAP
Ford
Cameco
Peloton Interactive Inc.
Toyota
Amgen
AT&T
Infosys
Starbucks
Lloyds
Qualcomm
Canopy Growth
3D Systems
CarMax
LUCID
Eni
AMD
Target
IBM
FirstRand
Lumentum Holdings
Alphabet (Google)
Workday Inc
ASOS
Conoco Phillips
Moderna Inc
Trump Media & Technology Group
Fuelcell
MerckCo USA
Salesforce.com
Hermes
BASF
AstraZeneca
Christian Dior
Broadcom
Oracle
Vipshop
CCB (Asia)
Nio
Block
Uber
Accenture
Meta (Formerly Facebook)
Berkshire Hathaway
Wells Fargo
Blackrock
Rolls-Royce
Pfizer
Microsoft
Home Depot
Mastercard
Lufthansa
Marriott
AbbVie
China Life
Baidu
Eli Lilly
DeltaAir
Chipotle
BP
General Electric
eBay
Quanta Services
Netflix
Micron
Visa
Golar LNG
ADT
JD.com
American Airlines
Porsche AG
Palo Alto Networks
Teleperformance
Lockheed Martin
Upstart Holdings Inc
Delivery Hero SE
Airbnb Inc
Nel ASA
GoHealth
Shopify
Aptiv PLC
Bank of America
PepsiCo
Philip Morris
Exxon Mobil
Procter & Gamble
Beyond Meat
Snowflake
L'Oreal
Sea
Porsche
Deutsche Bank
Nike
Unilever
CAT
Prosus N.V.
Unity Software
Citigroup
Upwork Inc.
Vir Biotechnology

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

737 Max news: Alaska Airlines to keep the Max 9 grounded until Saturday

On Monday, Alaska and United Airlines reported the discovery of loose components on various grounded aircraft during initial inspections, raising new concerns about the manufacturing process of Boeing's top-selling jet family. Since Saturday, both carriers have canceled hundreds of flights, with United discontinuing approximately 200 and Alaska Air canceling 158 on Thursday.

The U.S. Federal Aviation Administration (FAA) suspended all flights with that model last Saturday and is still inspecting planes for loose bolts.

Boeing has been working with regulators to provide instructions for safely operating MAX 9 jets with emergency door plugs. These plugs are utilized for specific seating configurations that do not require all available emergency exits, and they have been in use for decades.

Jefferies analyst Sheila Kahyaoglu said on Wednesday that Boeing has revised its initial instructions based on FAA feedback. The FAA grounded 171 MAX 9 jets after the Alaska Air accident and said Tuesday that “the safety of the flying public, not speed, will determine the timeline for returning the Boeing 737 9 Max to service.”

“Safety over speed likely extends [the] grounding,” Kahyaoglu wrote. The analyst maintains a two-week pause in flights as her base case.

Boeing news: Jefferies analyst says grounding could cost the company $36 million

U.S. Transportation Secretary Pete Buttigieg said on Wednesday that no grounded aircraft would return to service until they are deemed safe, emphasizing that there is no specific timeline for their return to the skies.

His remarks highlight the expectation that the MAX 9 issue for Boeing will not be swiftly resolved. However, one positive aspect for investors amid the turmoil is that the MAX is a relatively low-volume plane.

According to Kahyaoglu, the two-week grounding would cost Boeing approximately $36 million. Wall Street estimates suggest that the MAX 9 grounding could incur costs ranging between $1 million and $2 million per day in customer compensation.

Boeing is anticipated to generate around $6 billion in free cash flow in 2024.

Boeing stock price forecast: Berstein sticks to projection, says “few customers will switch from MAX”

Equity analysts at Bernstein maintained their Outperform rating for Boeing shares and a $272 per share price target.

Their latest comments were made after recent media reports indicated that the problem with Alaska Air's Flight 1282 extends beyond an isolated manufacturing issue. Monday’s inspections at Alaska and United suggested a consistent pattern of substandard workmanship and quality lapses.

This trend is presumed to have its roots at Spirit Aerosystems, where the fuselage assembly takes place.

“While Boeing may not be directly responsible, it should have exercised better inspections or oversight at Spirit. Despite the headlines, we do not see this as a ‘737MAX problem’ or design issue”, the analysts said.

The analysts anticipate that "few customers" will consider transitioning away from the MAX, as the "commonality" within fleets and subfleets at major carriers is "just too important."

At the time of writing on January 12, the Boeing share price last stood at $222.23, down 2.27% as of Thursday close and tumbling by 9.1% over the past 5 days. Shares of Boeing rival Airbus SE on the Euronext Paris exchange have gained over 3.2% since Monday.

When considering shares for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

New Zealand dollar drops on unexpected dovish tone from RBNZ

Wednesday, 10 July 2024

Indices

Unexpected dovish tone from RBNZ drops New Zealand dollar

Sterling steady as investors take in UK, French election results

Tuesday, 9 July 2024

Indices

Sterling steady near one-month high in wake of UK election

BP shares fall on Q2 profit warning

Tuesday, 9 July 2024

Indices

BP shares drop over 4% on Q2 lower profit warning

BP shares dip ahead of Powell Congress testimony

Tuesday, 9 July 2024

Indices

BP dips, Powell Congress speech ahead, records for Tokyo, NY

Live Chat