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Update: Boeing Shares Fall Amid Aircraft Safety, Production Concerns
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Update: Boeing Shares Fall Amid Aircraft Safety, Production Concerns
Mar 12, 2024 10:27 AM

01:12 PM EDT, 03/12/2024 (MT Newswires) -- (Updates with Boeing's ( BA ) comments in fifth and 10th paragraphs.)

Boeing ( BA ) shares were 4.4% lower in recent Tuesday trading amid concerns that the safety crisis triggered in January by the mid-air door panel blowout of an Alaska Airlines (ALK) jetliner continues to weigh on the aircraft maker's production.

US airlines have warned that their plans to boost capacity are now in jeopardy due to plane delivery delays from Boeing ( BA ).

United Airlines (UAL) Chief Executive Scott Kirby said an event Tuesday that "Boeing ( BA ) deliveries are going to be way behind this year," according to a Capital IQ transcript.

Southwest Airlines ( LUV ) said Tuesday in a regulatory filing that it has revised its Q1 guidance after Boeing ( BA ) said it will be delivering only 46 737-8 jets this year, compared with the 79 the carrier was expecting.

"We are squarely focused on implementing changes to strengthen quality across our production system and taking the necessary time to deliver high quality airplanes that meet all regulatory requirements," Boeing ( BA ) told MT Newswires in a statement. "We continue to stay in close contact with our valued customers about these issues and our actions to address them."

A Federal Aviation Administration audit of the manufacturing process for the 737 Max, initiated after the Alaska Airlines incident, found that Boeing ( BA ) failed 33 of 89 product audits, according to a report by The New York Times on Tuesday.

"We continue to implement immediate changes and develop a comprehensive action plan to strengthen safety and quality, and build the confidence of our customers and their passengers," Boeing ( BA ) told MT Newswires.

Meanwhile, The Washington Post reported Tuesday that John Barnett -- a former Boeing quality manager who had raised safety concerns -- was found dead last week in South Carolina.

The report said that Barnett died on Saturday of an apparent self-inflicted gunshot wound, according to the Charleston County coroner's office. A police investigation is ongoing, the report added.

"We are saddened by Mr. Barnett's passing, and our thoughts are with his family and friends," Boeing ( BA ) told MT Newswires.

Price: 183.82, Change: -8.68, Percent Change: -4.51

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