United Airlines (NASDAQ:UAL) shares dropped more than 4% intra-day today following the Federal Aviation Administration’s (FAA) decision to enhance its supervision of the airline due to a sequence of recent safety events.
The FAA announced last week its intention to conduct a thorough review to verify United Airlines’ adherence to safety standards. This action comes after the airline was involved in multiple safety incidents over the past two weeks.
Significant incidents include the discovery of a missing external panel on a United aircraft upon its arrival in Oregon on March 15, an event currently under FAA scrutiny. Additionally, a Boeing 737 MAX operated by United veered off the runway onto grass in Houston, and a Boeing 777-200 en route to Japan from San Francisco lost a tire after departure, necessitating a diversion to Los Angeles where it safely landed.