United Airlines shares fall after US FAA increases oversight

[March 25, 2024]  (Reuters) - Shares of United Airlines fell about 5% in premarket trade on Monday after the U.S. Federal Aviation Administration's (FAA) move to increase its oversight of the carrier after a series of recent safety incidents. 

Last week, the FAA said it would initiate a formal evaluation to ensure the Chicago-based airline was complying with safety regulations.

The airline has experienced several safety incidents in the past two weeks.

A United Airlines Boeing 737 MAX 9 jetliner is grounded, as passengers try to rebook their tickets from cancelled United Airlines flights after U.S. air safety regulator the Federal Aviation Administration (FAA) grounded 171 Boeing 737 MAX 9 jetliners for safety checks because of the emergency landing of an Alaska Airlines plane, at Luis Munoz Marin International Airport in San Juan, Puerto Rico January 7, 2024. REUTERS/Miguel J. Rodriguez Carrillo/ile Photo

On March 15, an external panel was found missing from a United aircraft when it landed in Oregon, prompting an FAA investigation.

Before that incident, a United Airlines-operated Boeing 737 MAX rolled onto the grass in Houston. A United-operated Boeing 777-200 bound for Japan also lost a tire after takeoff from San Francisco and was diverted to Los Angeles, where it landed safely.

Earlier this month, United also said that its Boeing deliveries were going to be "way behind this year," adding that it was "impossible to say when MAX 10 is going to get certified."

(Reporting by Nathan Gomes in Bengaluru; Editing by Tasim Zahid)

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