ALK Stock Falls After Alaska Air Flight Blowout

Alaska Air Group (NYSE: ALK ) stock fell 4.4% over the weekend after a door plug blew off one of the Boeing 737 MAX 9 jets it flies. The incident resulted in hundreds of flight cancellations. Boeing (NYSE: BA ) was hit even harder, falling 7% in overnight trading. AA Flight 1282 landed safely in Portland, Oregon, although several passengers required treatment.

But the impact on air travel and Boeing may continue for some time. Alaska Air has grounded its fleet of 737 MAX 9 planes pending investigations and inspections. The Door Blew Off? Alaska Air issued a statement saying it canceled 230 flights on Sunday and Monday, with more expected. It said the National Transportation Safety Board (NTSB) is investigating the incident.

The Federal Aviation Administration (FAA) grounded all 171 737 MAX 9 planes that operate over U.S. territory. The agency said there are 218 worldwide. The plane that lost its door plug was delivered on Oct. 31. The impacted part is a panel in the fuselage near the mid section of the aircraft used to fill unused doors.

The plane was headed to California when the incident occurred. Photos of the aftermath show the door plug missing from the plane on an exit seat row. Alaska Air previously restricted the plane’s use over water after warning lights went off on three recent flights. Maintenance workers were told to investigate the cause but just reset the system and put the plane back into service.

Alaska Air agreed to buy Hawaiian Air on Dec. 4 for $1.9 billion, including debt . ALK stock rose sharply through Christmas, but shares are now up just 2% since the deal was announced. Before the incident, Boeing stock was on the rise, up 24% since late October. The incident knocked off nearly one third of that gain.

Analysts said it would take just a few hours to check the MAX fleet and get planes back in the air. But a JPMorgan Chase analyst said the incident may delay new plane shipments to China, which were about to resume . BA Stock and ALK Stock: What Happens Next? Boeing investors don’t need to be reminded of the series of scandals that began after two 2019 crashes caused by faulty electronics claimed the lives of 346 people .

But some bulls are calling this new, significantly less catastrophic incident a buying opportunity. As of this writing, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines ..