Boeing Company (NYSE:BA) shares are down 6.50% over the past few sessions. The company warned this week that 737 MAX deliveries could be delayed due to wiring flaws.
- Boeing stock is feeling bearish pressure. What’s weighing on BA shares?
737 MAX Delivery Delays Raise Concerns
According to Reuters, Boeing said some 737 MAX aircraft require rework to fix wires that have small scratches caused by a machining error. The company said the issue could delay deliveries of certain aircraft during the first-quarter.
Boeing said production of new 737 MAX jets continues at its current rate of 42 aircraft per month. The company did not specify whether the wiring scratches were caused by a supplier or internally.
The planemaker said it has informed the Federal Aviation Administration (FAA) and customers about the issue.
Boeing added that all in-service 737 MAX aircraft can continue to operate safely and said it does not expect the issue to affect its goal of delivering about 500 737 jets this year.
The update comes after Boeing reported delivering 51 aircraft in February, the highest monthly total since 2018 and an increase from 46 deliveries in January. February deliveries included 43 737 MAX jets.
The company said it plans to increase production to 47 jets per month later this year and is opening a fourth 737 assembly line at its Everett, Washington plant this summer. Boeing aims to reach a production rate of 63 737 jets per month in the coming years.
Boeing Shares Edge Lower
BA Price Action: At the time of publication, Boeing shares are trading 3.85% lower at $205.85, according to data from Benzinga Pro.
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