• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

2

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less

1

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting

2

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup

3

Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
Finance

United Airlines loses $600 million in market cap on news that FAA is opening a probe after airline’s 10th safety flub in just 2 weeks

Sasha Rogelberg
By
Sasha Rogelberg
Sasha Rogelberg
Reporter
Down Arrow Button Icon
Sasha Rogelberg
By
Sasha Rogelberg
Sasha Rogelberg
Reporter
Down Arrow Button Icon
March 25, 2024, 4:03 PM ET
United CEO Scott Kirby is wearing a dark suit and is sitting on a chair onstage.
United CEO Scott Kirby said the airline's series of safety gaffes are unrelated.Kevin Dietsch—Getty Images
Add Fortune on Google for similar content.

United Airlines shares fell about 4% Monday—wiping out about $600 million of its market capitalization—following United’s Friday announcement that the Federal Aviation Administration would increase oversight of the airline following a series of safety gaffes.

Recommended Video

“The number of safety-related events in recent weeks have rightfully caused us to pause and evaluate whether there is anything we can and should do differently,” Sasha Johnson, United Airlines’ vice president of corporate safety, said in a memo to employees late Friday. “We welcome their engagement and are very open to hear from them about what they find and their perspective on things we may need to change to make us even safer.”

The FAA told Fortune in a statement that the oversight will “ensure that [United] is complying with safety regulations; identifying hazards and mitigating risk; and effectively managing safety.” It may prevent the airline from making new routes ahead of the busy summer season and may also delay future projects, depending on the oversight’s findings. The FAA also suspended United from promoting and approving pilots to fly different plane models, Bloomberg reported. 

The crackdown underlies the seriousness with which the regulator is responding to safety meltdowns in the airline industry, which have appeared abundant lately.

United had a run of 10 safety misfires in the two weeks leading up to the FAA’s increased scrutiny: A flight from Houston on March 4 was forced to return to the airport shortly after takeoff because its engine caught on fire. Several days later, a Boeing 777-200 in United’s fleet sat on the runway for over an hour before being deplaned because of a broken engine. The airline also had trouble with a missing panel on a plane’s fuselage; a Boeing 737 MAX that rolled onto the grass next to the taxiway; and another Boeing 777-200 that lost a tire midair, the debris of which landed in the airport’s parking lot, damaging several cars. 

‘They are all unrelated’

“Unfortunately, in the past few weeks, our airline has experienced a number of incidents that are reminders of the importance of safety,” United CEO Scott Kirby said in an email to customers. “While they are all unrelated, I want you to know that these incidents have our attention and have sharpened our focus.”

United is familiar with navigating crises in the industry. The airline filed for Chapter 11 bankruptcy in 2002, unable to continue operating after the 9/11 attacks rocked trust in the U.S. aviation business. It underwent a record 1,150 day restructuring process that saw a 30% reduction in staff and 20% reduction in aircrafts. Despite emerging from bankruptcy in 2006, the airline, once the second-largest in the world, failed to make significant gains, growing only 3.8% since that time.

Today’s shareholder mistrust in United coincides with Boeing CEO Dave Calhoun announcing his departure this year following months of mishaps across airlines and an FAA investigation which exposed dozens of issues within the manufacturer’s culture. Boeing’s shares jumped as much as 3.6% immediately following the news.

Boeing and United have more than just repeated cataclysms in common. They have a shared history dating back to the airline’s inception. Not only was Boeing Air Transport—first intended for international postal delivery—the precursor to United Airlines, but United Airlines helped Boeing skyrocket to success. In 1990, United bought the 1,832nd 737 aircraft, cementing its status as the world’s best-selling plane. The entities’ fates were inextricably linked then, but there are key factors that could spare one of them as United undergoes an FAA probe of its own.

How much is Boeing to blame for United’s troubles?

Despite United’s safety misfires occurring on Boeing planes—which make up about 80% of United’s fleet—airline consultant James Darcy of Darcy Strategic said that United likely needs to shoulder some of the blame. 

“There’s really nothing in these incidents that I’ve seen to date that would suggest that the accountability lies with Boeing, for each of them,” he said. “It’s much more reasonable to do what the FAA has done, which is to turn to United and to say, ‘We need to understand if there’s an underlying issue here.’”

Given the wide gamut of United’s safety incidents, the mistakes don’t appear to be related and could be attributed to either the manufacturer or maintenance by the airline. A March 8 incident in which a United-operated Boeing 737 returned to the airport shortly after taking off was due to the engine ingesting a piece of bubble wrap.

“That could have happened on any engine, any airplane, by any manufacturer,” Darcy said.

On the other hand, a hydraulic failure of a separate United flight could indicate a maintenance mistake or a premature failure of a part. It’s just too early to dole out blame, he argued. 

The increased oversight also doesn’t mean that United has reason to panic: “In this industry, trouble is rarely portioned out to companies over time,” Darcy said. “It tends to be delivered in large, lump-sum payments.” 

There’s also pressure on the FAA, which was heavily scrutinized in how it handled two Boeing 737 crashes in 2018 and 2019, which killed hundreds of passengers. After the accidents, the FAA reworked its oversight rules. That may mean lots of investigations these days, Darcy asserted, but it’s a correction to regulatory laxity that may have missed problems in the past.

“That’s probably all good news for the flying public,” he said.

About the Author
Sasha Rogelberg
By Sasha RogelbergReporter
LinkedIn iconTwitter icon

Sasha Rogelberg is a reporter and former editorial fellow on the news desk at Fortune, covering retail and the intersection of business and popular culture.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

A Viking ship named Havhingsten af Glendalough - the Sea Stallion of Glendalough -, the world's largest replica of a Viking warship, sets out 01 JUly 2007 from the Viking Museum in Roskilde, Denmark, on a voyage to Dublin in Ireland, where it is scheduled to arrive 14 August.
EuropeScience
1,000-year-old massive textile factory unearthed in Denmark—and it belonged to the Vikings
By James Brooks and The Associated PressJune 24, 2026
5 hours ago
Young couple standing in a brightly lit home
Real EstateHousing
A big look at the state of housing in America: Boomers won’t sell, millennials can’t buy, and Gen Z gets to watch the whole thing sort itself out
By Tristan BoveJune 24, 2026
6 hours ago
Wind turbines on yellow grass
Environmentwind power
California threatens to hit Trump with lawsuit if he doesn’t revive massive wind farm project off central coast
By Jennifer McDermott and The Associated PressJune 24, 2026
6 hours ago
Warren leans in to talk to Scott
PoliticsHousing
Congress’s landmark housing bill could backfire on millions of renters
By Jacqueline MunisJune 24, 2026
7 hours ago
Institute's Global Conference at the Beverly Hilton Hotel,on May 6, 2024 in Beverly Hills, California.
RetailSpaceX
Elon Musk was the world’s first trillionaire for 12 days
By Eva RoytburgJune 24, 2026
7 hours ago
President Donald Trump pictured in September 2025 signing an executive order that overhauled the H-1B visa program.
EconomyImmigration
Trump’s international student crackdown kicked off a domino effect that could shave nearly $500 billion off the economy
By Tristan BoveJune 24, 2026
8 hours ago

Most Popular

The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
Economy
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
By Jacqueline MunisJune 24, 2026
20 hours ago
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
2 days ago
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
Retail
Amazon's record Prime Day masks a darker truth: Americans are spending more and getting less
By Nick LichtenbergJune 24, 2026
12 hours ago
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
20 hours ago
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
Asia
Ray Dalio just finished a 10-day trip to China. He says global leaders know America ‘doesn’t have what it takes to fight to maintain its empire’
By Nick LichtenbergJune 24, 2026
13 hours ago
Current price of gold as of June 23, 2026
Personal Finance
Current price of gold as of June 23, 2026
By Danny BakstJune 23, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.