United Airlines stock tumbles as CEO launches safety review
United Airlines (UAL) shares are trading lower on Monday after the company's CEO, Scott Kirby, announced the launch of a comprehensive safety review of the airline's aircraft fleet. This decision comes in the wake of several concerning safety incidents, including the most recent event involving a Boeing aircraft landing without a fuselage panel.
The announcement of this safety review has raised concerns among investors, highlighting the potential risks and vulnerabilities within the aviation industry.
Yahoo Finance's Seana Smith and Brad Smith break down the details.
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Editor's note: This article was written by Angel Smith
Video Transcript
BRAD SMITH: Shares of United Airlines, they are ticking lower today, as CEO Scott Kirby announces the company is launching a safety review of the airline, as they have faced multiple issues in the span of just a few days, including a Boeing plane that landed without one of its fuselage panels at an Oregon airport on Friday.
The FAA is also investigating nine incidents this month involving United planes here. And so all of this considered, I think it actually places more focus on just how long now some of the aircrafts are going to remain in circulation, as you're seeing a push out of delivery of some of the aircrafts that were expected.
Ed Bastian and the previous earnings period, as well, had given me some insight into that. Typically, when you have to overhaul an engine or overhaul a plane, it takes about a 30- to 40-day period. And you have to do it every four or five years. There's going to be more pressure on more of those planes to remain in circulation for a little bit longer of a period of time, as they now take delivery of some of the new Airbus, the new Boeings that many of these airlines have really signed on for these delivery orders.
SEANA SMITH: Yeah. And I think this also just highlights the backlash that we've been talking about with a number of these commercial airlines, because of what has happened with Boeing over the last several weeks, several months. These commercial airlines are now feeling the pressure. And because of that, you have the fact that CEO Scott Kirby feels the need to address and launch an investigation here into exactly what is happening-- the safety of their planes.
He's trying to do his best to appeal to some of the customers. You mentioned the incident that happened at the end of last week. That was just one of a long list. They also had a United plane that lost a tire shortly after departure. One of their engines caught fire forcing an emergency landing. That was another situation.
You had another United plane run off a taxiway in Houston. So there's a long list of incidents that have happened. Of the nine that you mentioned there, Brad, six of those incidents involve a Boeing plane. So United CEO Scott Kirby coming out saying that they are launching a safety review here for the company. And they're looking to reassure people who may be a bit skeptical or unsure about getting on airlines right now, specifically, United, because of the events that have happened over the last several weeks.
BRAD SMITH: Absolutely. We'll see what comes of that internal review and bring you the latest discoveries there.
