Boeing’s shares plunge after faulty plane incident
Boeing’s share price plunged on Monday morning after the US airline regulator ordered the grounding of some Boeing 737 Max 9 jets. IGTV's Angela Barnes has the lowdown.
(Partial Video Script and AI Video Summary)
Alaska Airlines plane incident
It follows an incident on Friday which resulted in a part of one Boeing plane falling off during an Alaska Airlines flight. The Federal Aviation Administration (FAA) said the inspections would affect 171 planes operated by US airlines or in US territory. Alaska and United Airlines said late Saturday that they were grounding their entire fleets of Boeing 737 Max 9s.
Boeing share price drops
This has had a big impact on the share price of Boeing. If we look at a chart showing the price of their shares, we can see that it has dropped by 8.41%. This is not good news for Boeing because it means they have lost some of the money they made since the end of October last year. The reason the prices were going up before this happened was because U.S. airlines were paying an extra $1.3 billion for each Boeing 737 Max 9 plane. This was a lot of money for the airlines and now it is causing them financial problems.
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