What's Going On With Boeing Stock Premarket Tuesday?

Boeing Company (NYSE:BA) shares are trading lower premarket Tuesday. The U.S. Federal Aviation Administration (FAA) reportedly disclosed that inspections of Boeing 787 Dreamliners will be required.

This decision follows a March incident in which a LATAM Airlines (NYSE:LTM) plane experienced a sudden mid-air dive, injuring over 50 passengers, reported Reuters.

The FAA stated that the likely cause of the dive was the uncommanded movement of the captain’s seat, which led to the autopilot’s disconnection.

The agency has received five reports of similar issues with the captain and first officer seats on 787s, with two incidents still under investigation. The FAA’s airworthiness directive affects 158 U.S.-registered and 737 airplanes globally.

The directive mandates that airlines inspect the captain’s and first officer’s seats on 787-7, 787-9, and 787-10 models within 30 days for missing or cracked rocker switch caps or cracked switch cover assemblies, per the report.

The FAA warned that uncommanded horizontal movement of an occupied seat could lead to a rapid descent of the airplane, posing a serious risk of injury to passengers and crew.

Separately, Boeing announced it had halted test flights on its 777-9 awaiting certification after identifying a component between the engine and airplane structure that failed during a maintenance check.

The report further added that the FAA confirmed that Boeing had discovered the damaged component after a 777-9 flight test last week.

This month, the head of the National Transportation Safety Board (NTSB) stated that the mid-air emergency involving Alaska Air Group, Inc. (NYSE:ALK) Boeing 737 MAX 9 was entirely avoidable, as Boeing should have addressed unauthorized production work earlier.

Also, Boeing announced plans to make design alterations aimed at preventing future mid-air cabin panel blowouts.

Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and Gabelli Commercial Aerospace and Defense ETF (NYSE:GCAD).

Price Action: BA shares are down 0.97% at $177.89 premarket at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo Courtesy: Tada Images On Shutterstock.com

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