Boeing Stock Nosedives as Damning Report Predicts More FAA Audit Woes
Turbulence struck Boeing’s stock Tuesday as an ominous analyst report forecasting more safety scrutiny sent shares plunging nearly 5% intraday. The selloff highlights lingering doubts around when the aircraft maker will escape its crisis-riddled recent past. Authored by Wells Fargo aerospace analysts, the report predicts Boeing faces immense challenges satisfying regulators currently auditing its quality control and engineering processes. Titled “FAA audit opens up a whole new can of worms,” the report asserts years of oversight issues make significant Federal Aviation Administration findings inevitable.
The bleak preview came as an Alaska Airlines Boeing 737 Max jet shed cladding mid-flight last week, triggering an investigation. With confidence in Boeing’s once-sterling reputation already battered by fatal 737 Max crashes, analysts believe the latest incident will catalyze more damaging revelations.
“It’s unlikely the FAA comes out of this without some finding of significant non-compliance,” wrote Wells Fargo’s analysts.
While Boeing stated it will fully cooperate with the review, investors are losing patience with the endless storms rocking Boeing’s stability. The company has reported billions in losses and recently replaced its CEO and other top executives in hopes of smoothing FAA relations. Yet the latest audit underscores Boeing’s deep-rooted challenges transcending personnel changes. Until systemic fixes reliably satisfy regulators’ concerns, the forecast remains cloudy for restoring Boeing’s former blue-chip pedigree.
