Shares of Boeing Co. experienced a drop on Monday following a recommendation by the Federal Aviation Administration (FAA) for further inspection of door plugs in certain aircraft models manufactured by the aerospace giant.
According to the FAA, operators of Boeing 737-900ER aircraft are advised to visually inspect mid-exit door plugs to ensure that the doors are securely fastened. This recommendation aims to enhance safety measures in place.
It is important to note that while the 737-900ER is not part of the new Max fleet, which faced grounding due to door-plug issues, it does share a similar door plug design, as highlighted by the FAA.
Boeing's stock, listed as BA, +1.61%, slumped by 1.8% during premarket trading. This decline puts the stock on track to break its three-day bounce following a two-month closing low on January 16.
Also read: Boeing’s Stock Should Be Cautiously Monitored, Suggests Investment Manager
Although the stock experienced a 7.2% increase over the past three days until Friday, it has still suffered a significant decrease of 13.6% since a panel blowout occurred during flight on January 5. This blowout was caused by the loss of a mid-cabin door plug, which led to the grounding of the 737 Max 9 aircraft.
On January 11, the FAA initiated a formal investigation into Boeing's potential failure to conduct necessary safety tests. Subsequently, on January 17, the investigation expanded to include Boeing's manufacturing practices, specifically those related to subcontractor Spirit AeroSystems Holdings Inc., listed as SPR, -3.09%.
Over the past three months until Friday, Boeing's stock has experienced a rise of 19.4%, while shares of Spirit AeroSystems have surged by 27.2%. Additionally, the Dow Jones Industrial Average (DJIA) has witnessed a growth of 14.3%.