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Key Takeaways
- Boeing’s stock lost ground in early trading Monday following reports of injuries from a “technical problem” on a LATAM flight involving a Boeing aircraft and a Justice Department probe into an Alaska Airlines flight in January where a door plug came loose.
- The DOJ’s investigation comes as Boeing is also subject to other active investigations.
- Boeing shares have lost over one-fifth of their value since the start of 2024 amid concerns about ongoing investigations and other issues.
Boeing (BA) shares fell more than 3% in early afternoon trading Monday following reports of injuries from a “technical problem” on a LATAM flight involving a Boeing aircraft and a Department of Justice (DOJ) investigation into an Jan. 5 Alaska Airlines (ALK) flight where a door panel came loose from a plane.
The Justice Department has begun interviewing pilots and flight attendants who were on the plane and taken steps to contact passengers, according to a report by The Wall Street Journal.
Through its investigation, the DOJ could reportedly determine whether Boeing may have violated a previous settlement related to a pair of 737 MAX crashes in 2018 and 2019. If the aircraft maker is found to have violated the settlement, it could be charged with defrauding the U.S., or the DOJ could seek to extend the three-year probationary period during which Boeing has to update the federal government on its compliance improvements.
The reported investigation joins other active investigations related to the company’s manufacturing and safety processes. Just last week, the National Transportation Safety Board (NTSB) said it was investigating a February incident in which a pilot in a Boeing 737 Max 8 reported stuck rudder pedals during a landing.
Separately, a LATAM Airlines flight arriving in Auckland, New Zealand, Monday reportedly experienced a “technical event” that caused a “strong movement.” The Boeing 787-9 Dreamliner landed safely, but an estimated 50 passengers and crew were treated for injuries by first responders at the airport.
“We are working to gather more information about the flight and will provide any support needed by our customer,” a Boeing spokesperson told Investopedia.
Boeing declined to comment on the DOJ’s reported investigation, and the DOJ did not immediately respond to requests for comment early Monday morning.
“In an event like this, it’s normal for the DOJ to be conducting an investigation. We are fully cooperating and do not believe we are a target of the investigation,” an Alaska Airlines spokesperson told Investopedia.
Boeing shares were 3% lower at $192.61 as of 12:42 p.m. Monday. They’ve lost more than 23% of their value since the start of 2024 amid concerns about ongoing investigations and other issues.