Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

United and Alaska Airlines most affected by 737 MAX's latest grounding

Published 01/07/2024, 05:36 AM
Updated 01/08/2024, 05:42 AM
© Reuters.  United (UA) and Alaska Airlines (ALK) most affected by 737 MAX's latest grounding
(Updated - January 8, 2024 5:40 AM EST)

The US Federal Aviation Administration ordered the temporary grounding of certain Boeing (NYSE:BA) 737 MAX 9 jets flown by US airlines, after one such aircraft belonging to Alaska Airlines (ALK) lost an emergency exit door midair on Friday.

The agency's directive affects 171 airframes in total, with United Airlines (UAL) and Alaska Airlines impacted most by the regulation - the companies operate 79 and 65 of the jet types respectively.

Late Saturday, both airlines confirmed that they grounded their fleets of Boeing 737 MAX 9s. United had ~8,000 flights scheduled with the aircraft for January, and Alaska had ~5,000.

While the order only seeks to ground the aircraft type for an inspection that reportedly takes 4-8 hours per plane, Alaska Airlines said it would keep the planes temporarily grounded out of an abundance of caution.

Southwest Airlines (LUV), America and world's largest 737 MAX operator, only flies the smaller version of the jet, the MAX 8, and is not affected by the FAA's decision.

The incident on Friday saw an Alaskan 737 MAX 9 lose an exit 'plug' shortly after takeoff - carriers that don't have high-density seating configurations, are not required to use the additional emergency exit and choose to shut it down by installing a 'plug' instead of an actual emergency exit door.

On Saturday, Reuters reported that the plugs for the jet type are manufactured and installed by Spirit Aerosystems (SPR). The company has not issued a comment on the situation as of the time of this writing.

Latest comments

If it is Boeing, I am not going ( to fly ). Profit first attitude has made too risky to fly with Boeing airplane.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.