Boeing shares plunge 8% in Frankfurt after FAA grounds dozens of 737 MAX 9s

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Boeing Co.’s stock price tumbled in the Frankfurt Stock Exchange following a decision by the Federal Aviation Administration (FAA) to ground certain Boeing 737 MAX 9 aircraft. On January 8, Boeing shares in Frankfurt were reported at €208.40, marking a sharp decline of 7.52 per cent from the previous close of €225.35. This drop came amid broader market concerns, with the FAA requiring immediate inspections of the affected planes before they could return to flight.

The grounding order was issued after the FAA identified a need for inspections that would take approximately four to eight hours per aircraft, affecting an estimated 171 airplanes worldwide.

The directive followed an incident involving Alaska Airlines Flight 1282, prompting the FAA to prioritize safety and support the ongoing investigation by the National Transportation Safety Board (NTSB).

Investors reacted to the news with caution, as the regulatory scrutiny added to existing pressures on Boeing’s stock. The company, which is headquartered in Arlington, VA, has been navigating challenges within the aerospace industry, including competition and previous issues with the 737 MAX series.

The latest FAA action represents another blow to Boeing, nearly five years after the global grounding of MAX jets following two fatal crashes. 

Boeing competes with Airbus, which has extended gains in market share, since two Boeing MAX crashes in 2018 and 2019 that killed nearly 350 people and led to the MAX’s worldwide grounding for 20 months.

With inputs from Reuters

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