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Boeing Stock Falls After WSJ Reports Further 737 MAX Delays

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Boeing Stock Falls After WSJ Reports Further 737 MAX Delays

Shares of airplane manufacturer Boeing Co (NYSE: BA) were trading lower Tuesday on news that the grounded 737 MAX fleet may come back online later than expected, according to The Wall Street Journal.

What Happened

Boeing's 737 MAX planes remain grounded worldwide after two fatal crashes, and the possibility of a return to the skies by the end of 2019 remains uncertain.

The latest question mark comes from a Boeing briefing document that wasn't well received by regulators from the U.S., Europe, Brazil and elsewhere, according to WSJ.

The multiple regulatory bodies were not satisfied with the technical details and answers to specific questions about modifications in Boeing's software, the newspaper said. 

Boeing needs to resubmit a briefing document that passes the U.S. Federal Aviation Administration's scrutiny before it can be presented to international regulators, WSJ said. 

Why It's Important

Boeing reiterated in a statement to WSJ that it remains optimistic the 737 MAX will return to operation in the fourth quarter.

The company said the final green light will be given by the FAA and other global regulators.

What's Next

Airliners need to properly plan their flight schedules for the rest of the year and need to keep in mind that consumers don't have the luxury of changing their plans during the busy holiday season.

"By proactively removing the MAX from scheduled service, we can reduce last-minute flight cancellations and unexpected disruptions to our customers' travel plans," Southwest Airlines Co (NYSE: LUV) told WSJ in a statement in August.

Boeing shares were down 3.18% at $352.46 at the time of publication Tuesday. 

Related Links:

Analyst Explains Why Boeing's $4.9B Charge Announcement Is Encouraging

Fitch: Boeing's Credit Rating Could Be Cut

Photo by Steve Lynes via Wikimedia

Posted-In: 737 MAX The Wall Street JournalGovernment News Regulations Travel Media General Best of Benzinga

 

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