Market Overview

Boeing Trades In The Green On Report Of Coming Software Fix

Share:
Boeing Trades In The Green On Report Of Coming Software Fix

Boeing Co (NYSE: BA) shares were trading up Friday on a report that a 737 Max fix could come sooner than expected. 

What Happened 

Agence France-Presse reports that Boeing is reportedly rolling out a software upgrade for its 737 Max in 10 days, according to CNBC

This report comes just days after the FAA grounded all 737 Max flights, citing links between two fatal crashes involving the jets. There are more than 350 Boeing 737 Max airplanes in global fleets, and 74 are flown by U.S. Air, Southwest Airlines Co (NYSE: LUV), United Continental Holdings Inc (NASDAQ: UAL) and American Airlines Group Inc (NASDAQ: AAL). 

Why It's Important

Following the second fatal crash of the Boeing 737 Max in a matter of months, the FAA grounded the 737 Max and Boeing shares tanked more than 10 percent.

The stock was trading up Friday after the report that the software update could be deployed in 10 days, but the gains were limited. The manufacturer told CNBC that "the overall timeline has not changed."

What's Next

A 10-day turnaround on the software update would be much faster than some on Wall Street were expecting. 

Bank of America Merrill Lynch predicted it would still take Boeing three to six months of further testing to "certify the fix," according to CNBC. 

Related Links:

Jet Grounding Is Only Boeing's Second: Manufacturer Overcame Costly 2013 Stoppage 

Trump: US Will Ground Boeing 737 Max 8 And Max 9 Jets 

Photo by Konstantin von Wedelstaedt/Wikimedia

Posted-In: Agence France-Presse CNBCNews Travel Media General Best of Benzinga

 

Related Articles (BA + AAL)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Manufacturing Slumps Again, Weighing Down The Industrial Sector

Mid-Afternoon Market Update: Catasys Rises After Strong Q4 Results; Ra Medical Systems Shares Plummet