🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Boeing 737 MAX production stalls on tougher checks - reports

Published 04/04/2024, 14:18
Updated 04/04/2024, 14:41
© Reuters.  Boeing 737 MAX production stalls on tougher checks - reports
BA
-

Proactive Investors - Boeing Co (NYSE:BA)’s production of 737 MAX jets drastically reduced through the first quarter on the back of more rigorous quality checks and regulatory scrutiny, reports have said.

As per consultancy firm Cirium Ascend, Boeing carried out test flights on new 13 MAXs in March and 11 in February, implying production sat at a similar level.

A Reuters-quoted industry source said monthly production had slipped as low as single digits by late March meanwhile, after the figure peaked at a rate of 38 last year.

A door panel fell from an Air Alaska-operated 737 MAX 9 variant in January, prompting a brief grounding of the Boeing jets and a regulator-enforced cap on production.

Though this was set at 38 jets a month by the Federal Aviation Administration, reflecting previous production peaks, lower output comes as the regulator audits Boeing and the manufacturer carries out more stringent safety work itself.

This includes a reduction in so-called “travelled work”, where planes move further down the production line, despite work still needing to be done from previous stations.

Boeing and rival Airbus Group (EPA:AIR) had already been grappling with output delays due to supply shortages, with slowdown in the former’s production set to worsen this.

Ryanair (LON:0RYA) is among airlines waiting on orders of Boeing 737 MAXs, for instance, alongside the likes of Delta Air Lines Inc (NYSE:DAL) and United Airlines Holdings Inc (NASDAQ:UAL) in the States.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.