A government investigation of the incident may expand, agency head says.
Shares of Boeing have plunged nearly 10% this week after a door plug blew out of the company’s 737 Max 9 aircraft during an Alaska Airlines flight.
The incident, which took place on Friday night, prompted the Federal Aviation Administration to ground the aircraft.
The stock price of Spirit Aerosystems, the manufacturer of the door plug, has fallen by more than 11% since trading began on Monday.
The National Transportation Safety Board has opened an investigation into the incident. The Alaska Airlines flight, which carried 171 passengers, had taken off from the Portland International Airport and climbed to 16,000 feet when the door plug fell off the aircraft, according to the NTSB.
None of the passengers or crew members experienced serious injuries.
In a note to investors, Bank of America said the incident does not alter the firm’s previous recommendation that individuals buy shares of the stock. The bank, however, warned of a potential negative effect on public perception of Boeing.
“We do not expect this current issue to have a material impact to our 2024 financial forecast,” Bank of America said, adding, “We do see the latest incident as eroding the fragile confidence that has been built around the 737 Max franchise.
