Boeing stock is selling for $335.86 USD and is in the red 1.65% at the time of writing. Boeing (NYSE:BA) shares are reacting to more troubling news regarding the company’s line of 737 jets. This line includes the now infamous Max 737 model.
Boeing Stock Reacts to Further Faults with Max 737 Jets
According to the FAA, more than 300 737 jets may have faulty wing parts.
The aerospace body found that “up to 148 leading edge slat tracks manufactured by a supplier” are problematic. As a result, the affected parts may crack or fail prematurely. This means that more than 300 Boeing 737 jets may have faulty wing parts that don’t meet strength and durability standards.
The parts in question are the “slat tracks.” These are pieces on the front of the wing that move along a track to create lift. They are crucial to take-off and landing.
The FAA said further:
“the complete failure of a leading edge slat track would not result in the loss of the aircraft, [however] a risk remains that a failed part could lead to aircraft damage in flight.”
As stated, shares are reacting poorly to the news, and Boeing stock is down 1.65%.
The agency is currently undergoing a joint investigation with Boeing into its airplanes. The next step in the investigation is to order airlines to remove and replace the parts in question if their aircraft are affected.
Boeing Stock in 2019
Boeing shares have dropped over 23% since March when an Ethiopian Airlines plane crashed, killing all 157 passengers on board. It was the second incident in only several months where a Boeing Max 737 jet crashed resulting in total devastation. Similarities between this incident and October’s Lion Air crash led investigators to discover a serious problem with the model’s onboard automated system that’s designed to keep the plane from stalling.
>> UBER Stock Jumps Following First Quarterly Earnings After IPO Listing
Since the issue was revealed, Max 737 jets have been grounded across the globe. The company has been embroiled in allegations of misconduct and “cutting corners,” questions over safety, and several lawsuits—both from victims’ families and disgruntled airliners that have lost business to the grounded planes.
This morning, with stock reflecting these struggles, BA hit the lowest level since January 8th: $333.56.
As the company suffers another blow from this news, it is hard to tell if Boeing stock will recover in the near term. The jet maker has a lot of outward costs on the horizon as it seeks to mend damages not only to its planes but to its name as well.
Featured Image: DepositPhotos © adameq2
