Boeing shares plunge on delay to 737 Max return
Boeing said today it did not expect to win approval for the return of the 737 Max to service until mid-2020.
Boeing announced the delay after its shares were suspended following a report from CNBC.
Its shares fell 5.5 per cent to $306.23 before being halted ahead of the announcement.
Boeing said in a statement: “We are informing our customers and suppliers that we are currently estimating that the ungrounding of the 737 Max will begin during mid-2020.
“This updated estimate is informed by our experience to date with the certification process. It is subject to our ongoing attempts to address known schedule risks and further developments that may arise in connection with the certification process. It also accounts for the rigorous scrutiny that regulatory authorities are rightly applying.”
The 737 Max was grounded in March after two crashes in five months which killed 346 people.
Boeing said: “Returning the Max safely to service is our number one priority, and we are confident that will happen. We acknowledge and regret the continued difficulties that the grounding of the 737 Max has presented to our customers, our regulators, our suppliers, and the flying public.”
Boeing confirmed yesterday it had temporarily halted production of the 737 Max.
Boeing estimated the costs of the 737 Max grounding at more than $9bn (£6.9bn) to date, and is expected to disclose significant additional costs during its fourth-quarter earnings release on 29 January.
The company faces rising costs from stopping production of the plane, compensating airlines for lost flights and assisting its supply chain.