United Airlines Holdings Inc (NASDAQ:UAL, ETR:UAL1) shares are down 4% in premarket trading after the US air safety regulator said it was upping its scrutiny of the group after it suffered a recent ramp-up in incidents.
New measures are being considered by the authorities to prevent growth at the airline, including the halting of new routes and barring flying customers on newly delivered aircraft.
The Federal Aviation Administration has already suspended the group’s ability to allow pilots to fly alternative aircraft models.
“Certification activities in process may be allowed to continue, but future projects may be delayed based on findings from oversight,” the FAA said.
It comes as the FAA continues to probe United Airlines, with the authority now looking into the group’s manuals and facilities as part of the investigation.
Much of the woes for both airlines and aircraft makers came after the Alaska Airlines incident in January when a panel of a plane blew out mid-flight.
Since then, United Airlines has been involved in several incidents from hydraulic leaks to lost tyres to engine fires.
At the start of the year, United Airlines was able to shrug off much of the industry concerns when it reported better-than-expected fourth-quarter earnings and an optimistic outlook.