Boeing expands inspections for 737 Max defects
Boeing (BA) shares tick down during Friday's morning trading session as the airplane manufacturer expands its inspections for defects in 737 Max jets. These defects have weighed Boeing delivery figures down to their lowest rate since 2021.
Yahoo Finance Live takes a closer look at Boeing's stock and what these delays could mean for major airline operators.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
This post was written by Luke Carberry Mogan.
Video Transcript
- Let's also take a look at Boeing because shares on the move to the downside this morning.
Now, off just about 3%.
The 737 Max quality problem for the company continues this week.
There are more planes to inspect than the company initially anticipated.
Now, Boeing saying that the incorrectly drilled holes are not in immediate flight safety issue.
But the defect also impacts its delivery numbers, dropping them to the lowest since 2021 because the company is inspecting and fixing thousands of planes.
We see that pressure on the stock once again today.
And unfortunately, this is nothing new for Boeing-- a number of setbacks, a number of quality issues here over the last couple of years affecting the timeline, affecting the delivery number here.
That they're expecting over the last couple of years, once again, not out of the woods yet.
And we're seeing some of that concern reflected in shares today.
- I mean, I can't be the only traveler right now who inspects the seat back puck in front of me to see what type of aircraft I'm on when I get on there.
I-- and I have nothing against Boeing at all here.
I think, especially, here in the US, in terms of the comeback story that they have needed to be and moving past the culture of negligence that came to light, as a result of investigations, following the two fatal crashes that took place of Boeing 737 MAX jets internationally here and the grounding, and then the re initiation of making sure that they could get back to aerospace, it's a large story that we've covered for years at this point, and then, getting back to deliveries.
And so, just continuing to make sure that they're dotting the I's crossing the T's.
And making sure that every one of those large plane orders that they receive because this is a company between Boeing and Airbus, really accounts for over 90% of the large plane manufacturing and orders that come through.
So, they're amazingly important here.
But, I mean, there are some times when I get on a flight, and I say, Jesus be an mcast Because at the end of the day, there still is that concern that they have to go out and do quality control over the perception, the sentiment.
However, I've still flown on a few of them successfully, and well, yes, thank goodness.
- You've probably never gotten off the plane once you realize.
- I don't think I've ever gotten off a plane.
- Just might have been a little bit more sitting on the edge of your seat.
- Yeah.
I just-- I just pray.
- No.
But certainly-- and that also is a huge issue here for Boeing, right?
Just the customer backlash and whether or not people are willing or want to get on these flights because of the issues that they have had over the last couple of years.
- Right.
They were waiving change fees for a while.
And so now, all that consider, I think that it's been a tremendous effort by this new regime, this new executive management team to make sure that they are getting most of, and getting a lot of that positive net promoter score back, especially among their largest customers out there as well.