Sharjah24 – Reuters: Boeing Co on Wednesday confirmed a halt on 737 MAX deliveries after electrical problems re-grounded part of the fleet, and voiced concerns over a surging pandemic in India and U.S.-China political tensions.
Reuters reported on April 16 that Boeing stopped delivering its cash cow single-aisle 737 MAX after the electrical grounding problem - months after the plane returned to service following a lengthy safety ban.
The U.S. Federal Aviation Administration issued a new airworthiness directive Wednesday requiring a fix before the jets resume flight. The FAA said last week the issue impacts 109 airline planes worldwide but Boeing did not immediately say how many additional undelivered planes must be fixed.
Boeing's shares fell 2.4% after the U.S. planemaker reported its sixth straight quarterly loss and a charge on its high-profile Air Force One presidential jet program.
The barrage of technical and financial challenges clouded optimism over a resurgent U.S. domestic travel market fueled by vaccinations and pent up demand.
"We view 2021 as a critical inflection point for our industry," Chief Executive Dave Calhoun told analysts on a conference call.
Boeing has paused 737 MAX deliveries to address the electrical issues, and expects to "catch up on deliveries over the balance of the year," Calhoun added.
Boeing has delivered more than 85 737 MAX jetliners since it was cleared by most regulators to re-enter service late last year following two fatal crashes, lifting revenue and cash flow, it said.
Boeing said it still expects to deliver half the 400 MAX jets in inventory by end-2021, with a return to positive cash flow in 2022.
But the new electrical grounding problem found on some models of the jet earlier this month has cast a shadow on Boeing's freshly re-affirmed plans to increase 737 MAX production to 31 planes per month by early 2022. Airlines have pulled dozens of 737 MAX jets from service, awaiting repairs.
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