Just Plane Awful- Boeing's Subpar Performance Continues
Portfolio Pulse from Thrash Capital
Boeing's 737 Max 9 (NYSE:BA) fleet is grounded again, affecting airlines United (NASDAQ:UAL) and Alaska (NYSE:ALK). This adds to Boeing's struggles since the market crash during Covid and the previous global grounding after two fatal crashes in 2019. Boeing's CEO emphasized the need for quality over quantity in an all-hands meeting. The FAA has rejected Boeing's inspection standards proposal, and the planes will remain grounded until new standards are set. Boeing's stock may dip further, but a successful resolution could make it a buy. Airbus (OTC:EADSY) stands to benefit if Boeing fails to resolve its issues as airplane demand grows.
January 11, 2024 | 3:13 pm
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NEGATIVE IMPACT
Alaska Airlines, which operates the 737 Max 9, may experience short-term stock price volatility due to the grounding and operational disruptions.
Alaska Airlines' use of the 737 Max 9 means the grounding could lead to operational challenges and potential negative impact on its stock price in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Boeing's 737 Max 9 grounding could lead to further stock price dips in the short term, but successful resolution and return to service could provide a buying opportunity.
The grounding of the 737 Max 9 fleet is a direct hit to Boeing's operations and reputation, likely causing negative investor sentiment. However, if Boeing can quickly address the FAA's concerns, the stock may recover.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
United Airlines faces operational challenges with the grounding of Boeing's 737 Max 9, which may affect its stock price negatively in the short term.
United Airlines' reliance on the 737 Max 9 for its fleet operations means the grounding could disrupt services and potentially harm its stock price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Airbus could gain if Boeing fails to address the 737 Max 9 issues promptly, as demand for airplanes is increasing, potentially benefiting Airbus' stock.
Airbus stands as Boeing's main competitor and could capture market share if Boeing's quality issues persist, leading to positive investor sentiment towards Airbus.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 60