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

Markets InsiderSouthwest 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:

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.