Boeing Is Back in the Spotlight

Engine Failure Spurs Safety Investigation

Over the weekend, a United Airlines (UAL) flight from Denver to Honolulu landed 25 minutes after takeoff because its right engine failed. No passengers or crew members were injured. The aircraft was a Boeing (BA) 777-200 with an engine manufactured by Pratt & Whitney, a division of Raytheon Technologies (RTX)

Boeing issued an announcement asking airlines to stop flying these planes until further notice. The Federal Aviation Administration is currently in the process of conducting a safety inspection of the aircraft.

Few Airplanes Will Be Impacted by Investigation

There are 127 777s with Pratt & Whitney engines in operation, and United is the only airline in the US using the aircraft. They are also used by Japan Airlines, Korean Air, and other international air carriers.

This plane model is a wide-body aircraft used for long flights. Because demand for international travel has been reduced due to the COVID-19 pandemic, Boeing says many of the 777s were not in service at the time of the engine failure. Though this investigation has caused bad publicity for Boeing, the number of planes and airlines being impacted is fairly small.

The Impact on Boeing, and Other Stocks

Boeing shares are up 2% for the year but were down 1.8% at market close yesterday. Boeing’s stock is down nearly 50% since March 2019, when a second 737 MAX airplane was involved in a fatal crash, and the model was grounded around the world.

Raytheon Technologies stock also dropped since news of the engine failure, though United’s stock has climbed slightly. Investors will be eager to see how the FAA investigation unfolds and what that will mean for these companies.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.

TLS 1.2 Encrypted
Equal Housing Lender