Southwest turns lower after Trump announces all Boeing 737 Max jets will be grounded immediately (LUV)

Southwest shares.

Shares of Southwest
Airlines
turned lower on Wednesday after President Donald Trump
said the US would
immediately ground all Boeing 737 Max jets
following the
aircraft’s second deadly crash in five months.

Of all US airlines,
Southwest has the largest exposure
to Boeing’s 737 Max
aircraft. Other airlines with
exposure to the 737 Max planes
 include American, United, and
Air Canada.

Southwest shares initially traded higher on Wednesday before
turning negative, losing as much as 3% once Trump announced the
decision. Boeing
also fell into negative territory following the president’s
announcement while United
Continental
and American
both pared their gains.

Trump’s decision followed announcements from Canada, Europe, and
nearly 50 other countries to ground Boeing’s 737 Max planes.

“We have been in contact with Boeing and will continue to stay
close to the investigation as it progresses,”
Southwest said in a statement to Business Insider
.

Southwest shares were up 8.4% this year through Tuesday.

Read more on Boeing’s 737 Max 8 and the Ethiopian
Airlines disaster:


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Source: FS – All – Economy – News
Southwest turns lower after Trump announces all Boeing 737 Max jets will be grounded immediately (LUV)