Boeing halts deliveries of some 737 MAXs, shares fall
The announcement comes after the company announced last month that it was prepared to ramp up production of the 737s
Boeing is putting the brakes on deliveries of some 737 MAX jets as it grapples with a new supplier quality problem.
The latest announcement comes after the planemaker said last month that it was getting ready to ramp up production.
The problem involves the installation of two fittings that join the aft fuselage made by Spirit AeroSystems to the vertical tail, which were not attached correctly to the structure of the fuselage before it was sent to Boeing.
The problem could stretch back to 2019.
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A Boeing 737 Max is displayed during the Farnborough Airshow. ( JUSTIN TALLIS/AFP via Getty Images) / Getty Images)
Shares of Boeing are more than 4% lower in remarket trading., while shares of Spirit AeroSystems are down more than 10%.
Boeing provided the following statement to FOX Business:
"This is not an immediate safety of flight issue and the in-service fleet can continue operating safely. However, the issue will likely affect a significant number of undelivered 737 MAX airplanes, both in production and in storage."
The Boeing logo appears above a trading post on the floor of the New York Stock Exchange. (AP Photo/Richard Drew / AP Newsroom)
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Boeing said in late March it was planning to ramp up production for the 737 MAX airliners "very soon."
The problem impacts a portion of the 737 MAX family of airplanes, including the MAX 7, MAX 8 and MAX 8200 airplanes as well as the P-8 Poseidon maritime surveillance aircraft.
The headquarters of Spirit AeroSystems Holdings Inc, is seen in Wichita, Kansas, U.S. (REUTERS/Nick Oxford / Reuters Photos)
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The Federal Aviation Administration said it had "validated" Boeing's assessment that there was no immediate safety issue.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 149.27 | +5.87 | +4.09% |
| SPR | SPIRIT AEROSYSTEMS | 32.49 | +1.14 | +3.62% |
Certain versions of the aircraft, like the MAX 9, use fittings from different suppliers and were correctly installed.
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Boeing had aimed to increase monthly MAX production rates from 31 to 38 by June.
Reuters contributed to this report.