Despite the ongoing grounding of its 737 MAX 9 planes, Boeing stock showed signs of stabilization on Thursday. Alaska Air announced on Wednesday its decision to keep the Boeing 737 MAX 9 planes grounded until Saturday, resulting in an impact of 110 to 150 flights per day. The Federal Aviation Administration also suspended all flights involving this model aircraft last Saturday and is currently conducting inspections to address issues related to loose bolts.
U.S. Transportation Secretary Pete Buttigieg stressed on Wednesday that the grounded aircraft would not return to service until they are deemed safe. It is important to note that there is no specific timeline for when these planes will be able to fly again.
These comments highlight the fact that Boeing will face a prolonged challenge in resolving this matter. The incident from last Friday, in which a door plug on an Alaska Air flight detached from the fuselage only 10 minutes after takeoff, has led to a drop of more than 10% in Boeing’s shares. Fortunately, no injuries occurred during the incident; however, subsequent inspections have revealed the presence of loose bolts in other planes’ door plugs.
Although there has been a recent rebound, with Boeing shares increasing by 0.4% to $228.75 in premarket trading on Thursday following a 0.9% rise on Wednesday, the overall performance in 2021 has been disappointing. Since the beginning of this year, Boeing shares have experienced a 13% decline.
Meanwhile, Alaska Air witnessed a slight decline of 0.2% in after-hours trading on Wednesday. Conversely, Spirit AeroSystems, a manufacturer of fuselage parts for Boeing, showed a 1.3% increase after the market closed.
During a conversation with employees, Boeing CEO Dave Calhoun took responsibility for the situation and referred to it as “our mistake” while visibly emotional.
