Dow Jones, the aerospace and defense giant Boeing (Bachelor’sBloomberg has discovered a glitch that has delayed delivery of its 737 Max, Bloomberg reported late Wednesday. Boeing stock fell 3% early Thursday. the supplier Soul Aviation Systems (SPR), again the obvious source of the problem, down more than 12%.
The company discovered that Spirit had improperly drilled holes in 737 MAX fuselage components that help maintain cabin pressure. Inspections revealed hundreds of perverted and repeated perforations, according to reports. However, the FAA says the problem does not pose a safety threat.
Boeing said it was working to determine the impact, if any, on deliveries of 737 aircraft. It’s just the latest issue for Boeing, which saw production slow in late June as the Spirit machinists’ union went on strike.
Boeing has produced about 38 737 MAXs per month this year, with a goal of delivering 400-450 in 2023. The company plans to increase production to 50 737s per month in the 2025-2026 timeframe, according to second-quarter earnings. Report from late July.
Spirit AeroSystems produces about 70% of Boeing narrowbody jet tires. The company also manufactures towers for Airbus. The pylons connect the jet engines to the airframe. Other major Spirit customers include Northrop Grumman (No objection certificate), Lockheed Martin (LMT), textron‘s (short message) Bell Helicopter and Bombardier.
British Airways shares fell 3.3%, leading Thursday’s early declines among Dow Jones Industrial Average stocks. Boeing shares are trading near the buy zone of a flat base after rising above the buy point of 223.91 on July 26. The stock is below the 21-day exponential moving average and its 10-day line.
Boeing shares are up 20% in 2023 through Wednesday’s close as the travel industry rebounds and demand for planes soars.
SPR stock fell 12.3% Thursday morning after the report. Spirit stock is down 22.4% so far this year through Wednesday’s close. The shares are hovering near a 2023 low of 21.47 from last week.
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