Boeing shares rose Wednesday, but its bonds have not recovered from the volatility they experienced in early January after an Alaska Airlines 737 Max 9 plane tore off its panel during a flight.
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Boeing shares rose on Wednesday as its CEO arrived in Washington, D.C., for meetings with US lawmakers, but the company's bonds have yet to recover from recent volatility.
boeing BS,
The bonds were hit by concerns after a 737 Max 9 plane carrying Alaska Airlines tore off its panel earlier this month. On Tuesday, United Airlines Holdings Inc. (UAL) announced,
It said it was reconsidering its long-term plans for the upcoming Boeing MAX 10, the largest 737 MAX to date, after the government grounded dozens of MAX 9 jets.
Read now: United withdraws plans for Boeing's largest 737 MAX, after grounding the MAX 9 proved to be the 'straw that broke the camel's back'
“We fly safe planes,” Calhoun said He told a group of reporters on Capitol Hill. “We don't put planes in the air that we don't trust 100%.” He said he is meeting with lawmakers “in the spirit of transparency” and to answer their questions.
Ben Minicucci, CEO of Alaska Airlines ALK,
Inspectors found loose bolts on “several” Boeing 737 MAX 9 planes that were evaluated after the mid-flight explosion, NBC News said in an interview published Tuesday.
On Saturday, a Boeing 757 plane belonging to Delta Airlines, DAL, landed.
The plane lost one of its wheels as it was preparing to take off from Atlanta's main airport, according to the Federal Aviation Administration.
Spreads on Boeing bonds widened in early January after the Alaska Airlines incident and have yet to recover, even as spreads tightened in the broader high-quality market, as the following chart from data solutions provider BondCliQ Media Services shows.
Select Boeing Bonds: Year-to-Date Spread Performance.
Bond Click Media Services
As the negative headlines continue, there has been a net selling of bonds over the past two weeks.
Boeing's most active net customer flow issues (last 10 days).
Bond Click Media Services
Boeing has just over $17 billion in debt due in the next three years.
Boeing Company's outstanding debt (in US dollars) by year of maturity.
Bond Click Media Services
Meanwhile, the stock was up nearly 2% on Wednesday and is up 18% in the past three months. But it has lost about 17% this month so far.
Earlier this week, the Federal Aviation Administration (FAA) recommended that more models of the airline giant's planes should be inspected.
“As an additional layer of safety, the FAA recommends that operators of Boeing 737-900ER aircraft visually inspect the middle exit door seals to ensure the door is properly secured,” the FAA said on its website.
The FAA said the 737-900ER is not part of the New Max fleet, which had door plug issues that led to the grounding of the 737 MAX 9, but has the same door plug design.
Read also: The investment manager says Boeing shares should be in the box for now.
