Safety Emergency Grounds Older MD-11 Aircraft Amid Renewed Cost Worries

The U.S. Federal Aviation Administration (FAA) has issued an emergency suspension of MD-11 flights, causing significant disruption in both the aviation and logistics industries.

and have grounded more than 50 of these older cargo aircraft after a deadly accident in Louisville, Kentucky. The FAA's order, released on November 8, requires thorough inspections of the engines and pylons on these planes after a UPS MD-11 cargo jet broke apart during takeoff, resulting in 14 fatalities. This tragedy has renewed concerns about the MD-11’s safety, with industry analysts pointing to its high upkeep expenses and outdated engineering as reasons for its gradual retirement, .

The crash happened as the aircraft was departing for Honolulu, with one of its engines separating from the left wing shortly after liftoff. According to the National Transportation Safety Board (NTSB), cockpit voice recordings captured an alarm and the pilots’ struggle to regain control in the last 37 seconds before the crash, . The FAA’s urgent airworthiness order highlighted the danger of “loss of continued safe flight and landing” if similar failures occur in other MD-11s, . , which took over the MD-11 line in 1997, supported the FAA’s decision and advised halting operations to allow for technical review, .

The grounding has impacted logistics networks, with UPS noting that MD-11s make up 9% of its fleet, while FedEx reported these aircraft account for 4% of its total planes,

. The event also brings attention to wider safety issues in the cargo aviation sector, where older models like the MD-11 are still in service despite their high running costs. Experts observed that the shift from passenger to cargo use was mainly due to financial reasons, not performance, as the MD-11’s fuel consumption and maintenance needs have made it less viable, .

Elsewhere in the financial world, UBS upgraded Linde (LIN) to “Buy” with a $500 price target, citing stronger fundamentals for the industrial gas leader,

. This came amid a series of analyst moves, including Seaport Global’s $500 target and RBC Capital lowering its rating to “Outperform” with a reduced $540 target. Linde, the top global industrial gas provider, operates in more than 100 countries and reported $33 billion in revenue for 2024, .

In the biotechnology sector, Inflarx shares jumped 24% after Raymond James increased its price target from $2 to $9, following encouraging Phase 2a trial results for its hidradenitis suppurativa therapy,

. The company’s INF904 treatment achieved a 63% reduction in symptoms at eight weeks, outperforming rivals. Despite this, Inflarx remains unprofitable, posting a $61.8 million EBITDA loss over the past year, .

The FAA’s action on the MD-11 and recent corporate earnings updates illustrate how safety, efficiency, and investor sentiment influence business strategies. As the NTSB continues to probe the cause of the crash, the aviation industry prepares for possible long-term regulatory changes, while investors monitor ratings changes across various sectors.