Boeing (NYSE:BA) stock is sinking about 5% in early trading, and the airplane maker’s recent struggles will likely continue. That’s because the Federal Aviation Administration (FAA) has grounded all of Boeing’s 737 Max 9 planes again indefinitely, causing two airlines to cancel more flights.
Additionally, the agency intends to step up its supervision of Boeing in the wake of its safety and quality issues.
Airlines Can’t Use Boeing’s 737 Max 9 Planes for Now
The FAA has prohibited airlines from flying the planes until they are rechecked. The agency’s move comes after a door plug blew off one of Alaska Airlines’ (NYSE:ALK) new 737 Max 9 in midflight earlier this month.
As a result, United Airlines (NASDAQ:UAL) and Alaska Airlines “canceled flights through Tuesday,” Reuters reported.
Meanwhile, Boeing reported that it would increase the number of “quality inspections” performed on its 737 Max planes.
The Silver Linings for BA Stock
There are only 200 Max 9 planes in service, representing a relatively small percentage of the total 1,400 Max planes that are currently being flown globally, Barron’s reported.
Also noteworthy is that there’s only one other major passenger jet maker in the world: Europe-based Airbus (OTCMKTS:EADSY). Consequently, Boeing is unlikely to lose much of its revenue due to its latest issues.
On the other hand, many investors could abandon the shares for some time due to its new, unexpected struggles.
Heading into today, BA stock is down 5% in the last five days of trading, while it has sunk 20% in the previous month. The stock is down about 2% compared to where it was last year.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
