09:11 AM EDT, 03/25/2024 (MT Newswires) -- (Updates with a note to employees shared by United Airlines.)
United Airlines (UAL) will face increased scrutiny by regulators worried about recent safety lapses, the Federal Aviation Administration said in a statement to MT Newswires Monday.
"Due to recent safety events, the FAA is increasing oversight of United Airlines to ensure that it is complying with safety regulations; identifying hazards and mitigating risk; and effectively managing safety," the agency said in an email.
The FAA is discussing the possibility of blocking the airline from adding new routes and seating customers on its new aircraft, Bloomberg cited sources as saying.
The aviation industry regulator has already suspended United's ability to allow pilots trained on one airplane from flying others, Bloomberg reported, citing sources.
"Certification activities in process may be allowed to continue, but future projects may be delayed based on findings from oversight," said the FAA.
In a memo to employees, United vice president Sasha Johnson acknowledged that the FAA will "pause a variety of certification activities for a period." He said that the company "has stepped up our interactions with the FAA" which will begin having a greater presence at the company's facilities "as they begin to review some of our work processes, manuals and facilities."
Shares of the company were down nearly 3% in recent premarket activity.
Price: 45.13, Change: -1.34, Percent Change: -2.88