The Federal Aviation Administration has halted Boeing plans to expand 737 Max production, but did clear a path for grounded Max 9 jets to resume flights after a midair incident on Jan. 5. BA stock tumbled to fresh 2024 lows.
"We will not agree to any request from Boeing for an expansion in production or approve additional production lines for the 737 MAX until we are satisfied that the quality control issues uncovered during this process are resolved," FAA Administrator Mike Whitaker said in a statement.
However, the FAA did OK inspection instructions for the Max 9. Airlines have been awaiting that before checking their Max 9 fleets for a return to service.
The FAS grounded 737 Max jets after a fuselage panel blew out of an Alaska Airlines flight on Jan. 5. That forced United Airlines and Alaska Air, the two U.S. carriers with the Max 9 variant to cancel hundreds of flights.
United Airlines expressed frustration with Boeing woes on the carrier's Q4 earnings call this week, saying it could cancel orders for the long-delayed Max 10 variant.
Boeing Stock
Boeing stock fell 5.7% to 201.78, hitting a two-month low. SPR stock tumbled 7.9%.
UAL stock rose 5.2%. Alaska Air climbed 4.5%. Before the open, the domestic carrier topped Q4 views, but noted a rough start to 2024 due to the Max 9 incident and grounding.
On Wednesday, Boeing rose 1.2% to 214.13 as the aerospace giant made its first 737 Max delivery to China since 2019. Spirit AeroSystems jumped 7% on a report that Boeing mechanics, not Spirit Aero workers, improperly reinstalled the fuselage panel.
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