Airbus Flies High on Another Boeing Safety Scare

Shares in competitor Airbus moved higher as Boeing stock falls on a grounded flight.
Jennifer ChanFeb 22,2021,16:30

Typically, an engine failure would not move stock in an air carrier higher. And at first, it didn't; Boeing shares fell 3.2% in the premarket after an engine failed on a United Airlines Boeing 777 jet. Then, so beaten down was the big aerospace giant on the news, Boeing (NYSE: BA) flew higher, and after settling back down to Earth are still up on the day over 1% as of 11:15 am EST. Its main (and really only) competitor, the European aerospace player Airbus, (OTC: EADSY) however, is up over 4% on the news.

The last thing Boeing needs is yet another safety scare. The United Airlines Flight 328 had to make an emergency landing at Denver International Airport after its right engine failed right after takeoff, scattering pieces of the plane onto the residential neighborhood below.

Now, inspections of jets using the same Pratt & Whitney engine that failed have been ordered by U.S. regulators, and Boeing has recommended airlines suspend using those jets until said inspections are completed.

Also, a similar incident is being investigated by Dutch authorities in which a Boeing 747-400 cargo plane shed engine parts after takeoff from the Maastricht airport Saturday, according to Reuters.

Both planes landed safely. But how will shares of Boeing land by the end of the day?