Boeing shares tumble as deliveries of some 737 Max halted

Arlington (Virginia) [US], April 15 : Shares of Boeing fell 5.56 per cent to USD 201.71 on Friday after the aircraft maker halted the deliveries for its 737 MAXs as a result of supplier quality problem from Spirit AeroSystems.

Boeing said it has discovered a manufacturing issue with some 737 Max aircraft, although it insisted the problem is not "an immediate safety of flight issue," according to CNN Business.

A supplier used a "non-standard manufacturing process" during the installation of two fittings in the rear fuselage, Boeing said in a statement to CNN.

The company said Max jets can continue flying while inspections are underway and the Federal Aviation Administration said it "validated" that conclusion. It already subjects new 737 Max aircraft to greater scrutiny than it does other newly manufactured planes prior to delivery following two fatal 737 Max crashes.

Boeing declined to say how many 737 Max planes are affected, beyond calling it a "significant number."

United Airlines said it doesn't expect "any significant impact on our capacity plans for this summer or the rest of the year." According to CNN Business, Southwest Airlines (LUV) said it would work with Boeing on "any needed inspections or part replacements."

Boeing (BA) has reported only two profitable quarters in the nearly four years since the grounding of the 737 Max. After two fatal crashes that killed 346 people, the jet was grounded for 20 months starting in March 2019. Then a year later, the pandemic brought demand for flying and new aircraft to a near halt sparking the cancellation of hundreds of jet orders and the pileup of losses for Boeing (BA).