Boeing Stock Falls After Warning On Potential 737 Max Issue

Boeing (BA) recommended Friday that some customers fix a “potential electric issue” on certain 737 Max jets before returning them to service. Boeing stock fell.


The aerospace giant said that 16 customers were impacted by the recommendation and that it was working with the Federal Aviation Administration regarding the issue.

“We are also informing our customers of specific tail numbers affected and we will provide direction on appropriate corrective actions,” the company said in a statement.

Southeast Airlines (LUV) said the 737 Max recommendation will cause “minimal disruption” to operations. The carrier removesd 30 of its 58 Boeing 737 MAX airplanes from its schedule.

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Boeing Stock

Shares fell 0.9% to 252.98 in pre-market trading on the stock market today. Boeing stock remains in buy range from a 244.18 entry, according to MarketSmith chart analysis. Top 737 Max supplier Spirit AeroSystems (SPR) dipped 0.6% and engine suppler General Electric (GE) added 0.4%. Southwest edged up 0.3%.

The Boeing 737 Max returned to service in the U.S. in late last year following a 20-month grounding.

Orders and deliveries have also resumed, and the company will report first-quarter earnings on April 28.

Problems with the Maneuvering Characteristics Augmentation System automated flight-control software contributed to the Ethiopian Air crash in March 2019 as well as the October 2018 Lion Air crash. Combined, the two crashes killed 346 people.

Follow Gillian Rich on Twitter for aviation news and more.


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