Boeing shares wobble a bit due to the latest 737 Max being delayed
Boeing’s stocks plunged as much as 3% as the result of the news emerging that United Airlines and American Airlines will extend the cancellation of 737 Max flights.
According to The Wall Street Journal, the aerospace company has decided to get the 737 Max re-certified and may not be active in service for holiday travel.
Due to two unfortunate crashes, the 737 Max been grounded since mid-March and Boeing’s share price has fallen about 20% since early March.
According to the report, FAA (Federal Aviation Administration) is disappointed with the level of cooperation from the aerospace company as it expects to get Max 737 approved to return to service again.
“The FAA is following a thorough process, not a prescribed timeline, for returning the Boeing 737 Max to passenger service. The FAA will lift the aircraft’s prohibition order when we deem it is safe to do so,” the agency stated in a statement at the time.
The CEO of Boeing, Dennis Muilenberg expects that the 737 Max would hit skies by the fourth quarter. “There is still some risk to that time line associated with regulatory approvals and some things that we don’t control. We are working with regulators around the world,” Muilenberg stated in August.
(Reference: CNBC, Markets Insider, Benzinga)
(Image source: David Ryder/Getty Images)