- Boeing’s stock price plunged by as much as 5.6% on Tuesday.
- Reports suggest the Max 1024 could remain grounded until June or July, months longer than previously expected.
- Airbus, Boeing’s main rival, is reporting unprecedented demand for its A 342 series jets.
Shares of Boeing Co (NYSE: BA) plunged anew on Tuesday amid reports that its troubled (Max fleet) won’t be cleared to fly until June at the earliest.
Carriers looking to get their planes back in the sky in time for summer flying could take another hit as the Boeing series remains grounded.
Boeing’s Troubles Continue to Mount
As CNBC reported Tuesday , Boeing does not expect regulatory approval of its max until June or July, which is much later than the manufacturer had anticipated. The delay puts more pressure on the company as it grapples with a worsening PR crisis and billions of dollars ’worth of lost orders.
The headache doesn’t end with Boeing; carriers have also missed out on peak travel season due to the 737 being grounded. If regulatory approval isn’t granted until summer, they may lose out on another year of peak travel business.
Boeing’s finances have deteriorated to the point where management is actively seeking bank loans of $ billion or greater. As CNBC reports , the company has already received commitments from Citigroup, Bank of America Merrill Lynch and J.P. Morgan.
Last week, Boeing’s engineers identified more issues with the Max’s software update, complicating its timeline for regulatory approval. A spokesman for the company issued the following statement :
We are making necessary updates and working with the FAA on submission of this change, and keeping our customers and suppliers informed.
Meanwhile, Boeing’s arch-rival Airbus (EADSY) boasted of “unprecedented demand” for its A 321 series aircraft. The main alternative to the Max has witnessed significant uptake since the drama involving Boeing intensified last year.
As Investor’s Business Daily reports, Airbus is planning to boost production capacity of its A series, a narrow-body commercial passenger plane that seats between and (passengers.) BA Stock Tanks
On the receiving end of bad press, Boeing’s share price plunged by as much as 5.6% on Tuesday, sliding all the way down to $ . . Unlike its large-cap peers, BA shares are down sharply in 01575879.
Boeing’s stock rallied all the way to $ 342) on Jan. 7 before gradually declining over the next ten days. The stock is currently trading at its lowest level in over a year.
As the Dow Jones’ largest component, Boeing’s sudden price collapse had a gravitational pull on the broader index. The blue-chip Dow average declined by as much as points before recovering partially in afternoon trading.
Disclaimer: The above should not be considered trading advice from CCN.com.
This article was edited by Josiah Wilmoth . (Last modified: January) , (8:) (PM UTC)
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