Boeing stock recouped early losses Wednesday on reports that the Dow Jones aircraft maker will make its first 737 Max delivery to China since 2019. Meanwhile, shares of supplier Spirit AeroSystems rocketed after revelations surfaced that it was not responsible for improperly installed door panels on a Boeing 737 Max 9 that resulted in an emergency landing during an Alaska Airlines flight in early January.
Boeing is in the process of delivering a 737 Max aircraft to China Southern Airlines, Bloomberg reported Wednesday. It will mark the first 737 Max delivery to China since 2019 after Beijing banned the model following fatal crashes in Indonesia and Ethiopia.
About 85 Boeing 737s were waiting for delivery to China as of September, the Wall Street Journal reported.
Last week, China Southern announced it will increase the safety inspection regimen for new Boeing 737 Max aircraft following the Alaska Airlines fuselage panel blowout. The airline's jet order is not the same version as the 737 Max 9 model that has been grounded by the Federal Aviation Administration in the U.S.
China, a critical market for Boeing, is expected to account for 20% of global aircraft demand in the next two decades, according to Boeing forecasts. The new 737 Max models are key to revitalizing Boeing's business in the country.
Spirit AeroSystems Spikes
Meanwhile, the 737 Max 9 investigations revealed that it was Boeing mechanics, not supplier Spirit AeroSystems workers, who improperly reinstalled the failed fuselage panel, the Seattle Times reported.
An unnamed source cited in the report said the panel was removed for repair and reinstalled incorrectly by Boeing at the Renton final assembly line. Spirit originally installed the panel at its site in Wichita, Kans.
If the findings are verified by the National Transportation Safety Board, the Dow Jones giant will be primarily at fault. NTSB investigators previously raised the possibility that key bolts had not been properly installed.
The FAA earlier this month grounded all 171 Boeing 737 Max 9 jets in service for safety inspections after the Jan. 5 emergency landing. United Airlines on Jan. 8 reported finding loose bolts and other parts on five planes during its 737 Max 9 door plug inspections.
Boeing Stock
Boeing stock climbed 1.2% Wednesday to post the second-largest gain in the Dow Jones Industrial Average in afternoon trade. That put the stock just above its 200-day moving average and 19% below a late-December high. Shares tumbled this month following the 737 Max 9 grounding and delivery timeline concerns.
SPR stock jumped 7% Wednesday to just above its 50-day line. Spirit shares have recovered 92% from a September low and have backtracked about 10.1% so far in 2024.
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