Boeing Shares Tumble After FAA Investigation Fails 33 Out Of 89 Audits
Portfolio Pulse from Neil Dennis
Boeing Co (BA) and Spirit AeroSystems (SPR) faced significant setbacks after failing multiple audits by the FAA, following an incident with an Alaska Air (ALK) 737 Max jet. Boeing's shares dropped 4.2% after the FAA's findings were publicized, which highlighted issues including a faulty door plug. Spirit AeroSystems, a supplier to Boeing, saw its shares fall 7.78% after failing several tests. Additionally, a Boeing whistleblower was found dead under suspicious circumstances, and a Boeing 787 experienced a severe midflight issue, leading to an investigation by New Zealand's TAIC.
March 12, 2024 | 10:01 pm
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NEUTRAL IMPACT
Alaska Air's incident with a 737 Max jet led to FAA audits of Boeing and Spirit AeroSystems, indirectly affecting ALK's reputation.
While the incident originated with an Alaska Air flight, the direct financial and reputational impacts are more significantly borne by Boeing and Spirit AeroSystems. The indirect impact on Alaska Air may concern passenger trust and safety perception.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Boeing's stock fell 4.2% after failing 33 out of 89 FAA audits, highlighting safety and quality concerns.
The FAA's findings and the subsequent negative publicity directly impact Boeing's reputation and investor confidence, likely leading to a short-term decrease in stock price.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
NEGATIVE IMPACT
Spirit AeroSystems shares dropped 7.78% after failing several FAA audits, affecting its relationship with Boeing.
As a key supplier to Boeing, Spirit AeroSystems' audit failures and the resulting stock price drop reflect the direct impact of the FAA's findings on its operational credibility and financial performance.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90