The Federal Aviation Administration (FFA) says it is proposing to fine United Airlines more than $1.1 million
UNITED AIRLINES
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For failing to perform required safety checks of the fire system in its Boeing 777 aircraft.
The FAA claimed that in 2018 United removed a fire system warning check from the list of pre-flight checks it performs, and operated as many as 102,488 Boeing 777 flights from June 2018 to April 2021 that did not meet airworthiness requirements.
“The inspection is required in the Maintenance Specifications Manual. The removal of the inspection resulted in United’s failure to perform the required inspection and operating aircraft that did not meet the airworthiness requirement,” the FAA statement said.
Still, it should be remembered that this is not a significant amount for the American aviation giant since the company’s stock is not currently affected by trading. Airlines enjoyed a strong second half of 2022, as strong demand alongside industry capacity constraints led to higher airfares. While these conditions remain for now, the demand picture in 2023 is less clear, meaning investors may need to be more selective when it comes to picking global airline stocks.
Raymond James Analysts
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United is expected to have the biggest upside from the reopening of the Pacific region to flights, which accounted for 11% of revenue in 2019. Of the three segments – leisure, business and international demand – the international one may be the one that will accelerate in 2023. United is definitely betting on it, adding new routes to Malaga, Stockholm and Dubai for the summer, and six more flights to European travel hotspots, such as Paris, Rome and London. A deep recession scenario could jeopardize this perception of growing demand for flights, but so far consumers have shown a determination to actually take vacations.
United Airlines shares jumped 36% since the beginning of the year to a price of $50.7, giving a market value of $16.6 billion.
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