- US airline stocks traded lower Tuesday morning as Boeing’s 737 Max was continued.
- The major airlines with exposure the to aircraft were all down at least
- The pressure on the sector increased as six governments and more than 23 airlines grounded the aircraft.
- Delta, which does not have exposure to the aircraft, was outperforming.
US airlines stocks traded lower Tuesday as safety concerns surrounding the Boeing 737 Max grew louder on Tuesday as Britain joined China, Indonesia, Australia and Singapore in grounding the planes.
American Airlines, United Continental, and Southwest were all down more than 2% in Tuesday morning trading. Here’s a look at the scoreboard as of 11:35 a.m. ET.
- Southwest Airlines (LUV): -2.34%
- American Airlines (AAL): -2.25%
- United Continental (UAL): –2.48%
- Delta Airlines (DAL): -0.41%
Southwest operates 31 of the aircraft, while American Airlines and United Airlines operate 20 and 12, respectively. Southwest has the highest exposure by airline seat miles while Delta does not operate the aircraft.
As of Tuesday morning, the Federal Aviation Administration had not yet grounded the aircraft despite increasing pressure to do so. Senator Mitt Romney tweeted, "Out of an abundance of caution for the flying public, the @FAANews should ground the 737 MAX 8 until we investigate the causes of recent crashes and ensure the plane's airworthiness."
Outside the US, carriers with exposure to the 737 Max
are increasingly grounding the plane until further notice. Over 23 carriers have now grounded the aircraft.