Summary
- FAA increasing oversight to make sure safety compliance, which is impacting United Airlines’ share price.
- A series of recent incidents prompted the FAA’s involvement, including a Boeing 777 tire loss and a missing panel on a 737.
- The scrutiny may lead to potential restrictions on recent routes and aircraft for United Airlines.
United Airlines’ share price dropped by greater than 4% today following the news that the Federal Aviation Administration (FAA) can be “increasing its oversight” of the airline. Towards the tip of last week, the carrier’s share price had stabilized at around $46, but when the markets opened on Monday morning, they plummeted to a low of $43, before rising again barely throughout the day to only over $44.
Increased oversight to make sure safety compliance
Boeing aircraft, and particularly its 737 MAX series, have been thrust into the highlight greater than ever since January, when a door plug blew out mid-flight on a 737 MAX 9 belonging to Alaska Airlines. The increased oversight of United Airlines has been put in place by the FAA to make sure the airline is complying with safety regulations, following a series of incidents in recent weeks.
Photo: Benson Truong | Shutterstock
On March seventh, a Boeing 777-200ER belonging to United Airlines lost a tire on take-off from San Francisco International Airport (SFO), certain for Osaka Kansai International Airport (KIX) in Japan. The flight diverted to Los Angeles International Airport (LAX), where it landed safely.
![UA 777-200ER](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2024/02/ua-777-200er.jpg)
United Airlines Boeing 777 Loses Tire On Takeoff From San Francisco
Passengers affected are rescheduled onto a later service this evening.
The following day, a United Airlines Boeing 737 MAX 8 rolled onto the grass after landing at George Bush Intercontinental Airport (IAH) in Houston. Data from ch-aviation shows that the aircraft, registered as N27290, is certainly one of 85 737 MAX 8s that make up United Airlines’ fleet, and was delivered to the carrier in June 2023.
Photo: Angel DiBilio | Shutterstock
And only one week later, on March fifteenth, a United Airlines Boeing 737-800 landed at Rogue Valley International-Medford Airport (MFR) in Oregon with an external panel missing. Flight UA433 had arrived from San Francisco, carrying 133 passengers and 6 crew members. On the time, United Airlines said, in response to a report by The Washington Post.
What might this mean for United Airlines?
Among the many potential actions being mulled over by the FAA as a part of its increased oversight is stopping United Airlines from operating any recent routes or flying paying passengers on recent aircraft, as reported by Bloomberg. If this does occur, it couldn’t have come at a worse time for United Airlines, with the height summer travel season fast approaching.
Photo: Vincenzo Pace | Easy Flying
The looming threat of such measures to the airline’s operation has likely contributed to the slump in share price. That said, despite today’s drop in share price, it remains to be somewhat higher than the low of $34 seen in October 2023.
![United Airlines Boeing 787-9](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2023/12/shutterstock_1918656920.jpg)
Latest Record: United Airlines Plans 6 Routes To Africa This Yr
Things really developed lately.
What do you’re thinking that of the news that the FAA will increase its oversight of United Airlines in a bid to make sure continued compliance with safety regulations? Have you ever flown on the carrier recently? Share your thoughts and experiences by commenting below.