United Airlines shares fell about 4% Monday—wiping out about $600 million of its market capitalization—following United’s Friday announcement that the Federal Aviation Administration would increase oversight of the airline following a series of safety gaffes.
“The number of safety-related events in recent weeks have rightfully caused us to pause and evaluate whether there is anything we can and should do differently,” Sasha Johnson, United Airlines’ vice president of corporate safety, said in a memo to employees late Friday. “We welcome their engagement and are very open to hear from them about what they find and their perspective on things we may need to change to make us even safer.”
The FAA told Fortune in a statement that the oversight will “ensure that [United] is complying with safety regulations; identifying hazards and mitigating risk; and effectively managing safety.” It may prevent the airline from making new routes ahead of the busy summer…