United Airlines shares fall 3.4 per cent

WASHINGTON: Shares of United Airlines closed down 3.4 per cent on Monday ater the US Federal Aviation Administration (FAA) said over the weekend it was increasing its oversight of the carrier following a series of recent safety incidents.

On Saturday, the FAA said it would initiate a formal evaluation to ensure the Chicago-based airline was complying with safety regulations and said the FAA may delay future United certification projects “based on findings from oversight.”

Reuters reported Saturday the FAA could potentially not approve allowing customers on United’s new planes or new routes. The FAA and United declined to comment.

The formal evaluation, the Air Line Pilots Association (ALPA) the union representing United pilots said Monday, is an type of audit that US carriers undergo every few years and United most recently had one in 2018.

“This is an opportunity to identify the opportunities for improvement within our operation, identify changes to mitigate operational risk, and poise our airline for success by managing those changes effectively,” ALPA said Monday.

ALPA said it is unclear if the FAA will pause any United certification activities. “What we do know is that Boeing delivery delays could have an impact, just as any sotening of the economy or any temporary pause in certification activities,” ALPA said.

United has experienced several safety incidents in the past two weeks.

On March 15, an external panel was found missing from a United aircrat when it landed in Oregon, prompting an FAA investigation.