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London
CNN
—
Boeing Co.’s stock fell as much as 8.6% in premarket trading on Monday as investors worried about damage to the company’s business after part of its Boeing 737 Max 9 plane exploded, pushing the company’s stock market value down. It blew out nearly $13 billion. In flight.
An Alaska Airlines flight headed from Portland, Oregon, to Ontario, California, had to make an emergency landing on Friday after a section of the plane’s wall came off, leaving a large hole in the side of the plane.
The Federal Aviation Administration on Saturday ordered all Boeing 737 Max 9 planes grounded until they can be carefully inspected. The order applies to 171 aircraft around the world, with Turkish and Panamanian airlines also grounded.
Robert Clifford, an aviation trial lawyer, told CNN that the incident will have a negative impact on Boeing’s reputation and that the company will likely have to pay airlines for lost profits.
The incident is the latest in a long series of problems for Boeing. Boeing (BA)’s financial losses have been mounting since the 737 Max was grounded in March 2019 following two crashes that killed 346 people.
The company reported four consecutive annual losses from 2019 to 2022, with a net loss of $2.2 billion in the first nine months of last year. Full-year financial results for 2023 are scheduled to be announced at the end of January.
Boeing stock has rebounded since the pandemic disrupted the global airline industry, but is still down 34% from its February 2020 high.
By contrast, shares of Boeing Co.’s European rival Airbus Inc. are trading above their pre-pandemic highs, up 2.2% from their previous close in Paris by 6:19 a.m. ET on Monday. .
This is a developing story and will be updated.
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