HomeIndustriesBoeing Stock Plunges Amid 737 MAX Production Issues

Boeing Stock Plunges Amid 737 MAX Production Issues

Boeing announced on Thursday that it is expecting delays in the production and delivery of its 737 MAX airliners due to an issue with parts supplied to them by Spirit AeroSystems. The company’s shares took a hit shortly after the announcement, dropping by 4.5% in after-hours trading. 

According to Boeing, the problem is related to two fittings in aft fuselages for which Spirit AeroSystems used “non-standard” manufacturing procedures. The issue affects the 737 MAX units in production and in storage as well as some airliners already in use. However, the company notes that the latter can continue operating without any safety risks.

Boeing predicts that taking care of the issues will delay the production and delivery of new 737 MAX jetliners in the near future. The company delivered 111 737 MAXs in the first quarter and was hoping to deliver a total of 400 by the end of the year.

“We expect lower near-term 737 MAX deliveries while this required work is completed. We regret the impact that this issue will have on affected customers and are in contact with them concerning their delivery schedule,” Boeing said in a statement.

Boeing’s stock closed at $213.59 on Thursday before sliding to $203.97 per share in after-hours trading. The company’s shares have been almost 10 percent up year-to-date prior to the dip.

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