One Mark Back For Boeing? 'Cockpit Mishap' Likely Caused LATAM Flight To Plunge
Portfolio Pulse from Neil Dennis
A LATAM flight's nosedive, initially feared to be a Boeing 787 Dreamliner malfunction, was likely caused by a cockpit seat mishap. A flight attendant accidentally activated a switch, pushing the pilot into the controls. Boeing, already under scrutiny for a separate incident with an Alaska Airlines Boeing 737 Max 9, saw its shares drop 30% since the year's start. Airline stocks, including Southwest Airlines and American Airlines, have also suffered, with the U.S. Global Jets ETF experiencing a decline.
March 15, 2024 | 12:46 pm
News sentiment analysis
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NEUTRAL IMPACT
Boeing's 787 Dreamliner was involved in a LATAM flight incident, initially causing concern. However, the incident was likely due to a cockpit seat mishap, not a Boeing malfunction. Shares have dropped 30% since the start of the year, partly due to this and other incidents.
Although the incident was not directly Boeing's fault, the company's reputation and stock have been affected by a series of incidents. The short-term impact is neutral as this news might alleviate some concerns about Boeing's safety but doesn't offset the broader challenges.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
American Airlines lost 5% this week, partly due to the broader impact of Boeing's challenges on the airline industry.
American Airlines' stock decline is part of the wider trend affecting airline stocks due to issues with Boeing, though the direct impact is less severe than for some other airlines.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Alaska Airlines experienced a door panel blow-out on a Boeing 737 Max 9, contributing to Boeing's scrutiny and share price decline. This incident is part of the broader challenges affecting Boeing's reputation and stock performance.
The incident with Alaska Airlines has contributed to the negative sentiment around Boeing, impacting its stock price. The direct impact on Alaska Airlines is less clear, but it's part of the narrative affecting Boeing.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The U.S. Global Jets ETF, holding airline stocks including Southwest, American, Delta, and United, is down 2.7% this week, reflecting the broader challenges in the airline sector.
The decline in the U.S. Global Jets ETF is a direct reflection of the challenges facing the airline sector, including those related to Boeing, affecting investor sentiment.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Southwest Airlines' stock fell 18% in the past week due to delays in receiving new deliveries from Boeing, affecting its 2024 guidance.
The decline in Southwest Airlines' stock is directly linked to Boeing's delivery delays, highlighting the interconnectedness of airline and manufacturer performance.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80