Boeing Stock Is Moving Lower: What's Going On?

Boeing Co BA shares are trading lower Thursday. The Federal Aviation Administration (FAA) approved an inspection process to allow 737 Max 9s to return to service, but said it will not allow the company to increase production of the planes.

What To Know: The FAA initially halted flights and grounded 171 Boeing jets after a panel flew off a 737 aircraft during a commercial flight, forcing the airline to make an emergency landing.

The FAA extended its order for Boeing Max 9s to remain grounded in mid-January as it continued to review the situation. According to a Reuters report, the FAA will now conduct an inspection process of the planes.

“The exhaustive, enhanced review our team completed after several weeks of information gathering gives me and the FAA confidence to proceed to the inspection and maintenance phase,” FAA Administrator Mike Whitaker reportedly said in a statement.

The FAA said it has already uncovered “quality control issues” with the Boeing planes. The agency will not allow Boeing to expand production of its popular Max planes until the issues are addressed.

“We will not agree to any request from Boeing for an expansion in production or approve additional production lines for the 737 MAX until we are satisfied that the quality control issues uncovered during this process are resolved,” Whitaker added.

Boeing shares got a lift last week after Akasa Air placed an order for 150 737 Max planes. Despite the brief bounce back in shares, the stock is still down more than 17% over the last month.

Boeing is set to report fourth-quarter financial results before the market opens on Jan. 31.

BA Price Action: Boeing shares were down 3.33% at $207 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Boeing.