Shares of Boeing Co. transactions fell on Friday after the aviation and defense firm late on Thursday raised a new problem with the 737 Max jet, with at least one Wall Street analyst saying the fix would be easy and cause “minimal disruption” for Boeing customers.
Southwest Airlines Co.
one of the affected airlines, which removed about 30 737 Max jets from its schedule, or more than half of its 737 Max fleet, swapping them with other jets for flights.
The 737 Max jet has been landing around the world for almost two years since March 2019, after two fatal crashes less than 5 months apart.
Earlier this year, Boeing
was ordered to pay more than 2.5 billion dollars to address fraudulent US charges on problems with the jet family, one of the many financial and legal failures the airline has faced in terms of crashes, has ultimately been with a faulty anti-wave system.
Boeing has warned 16 customers that the airline did not disclose problems with the aircraft’s electrical systems. It said it is working “closely” with US aviation regulators to fix it.
Sheila Kahyaoglu analyst at Jefferies said in a note Friday that the issue appears to be “understood” and that the timing will depend on the availability of technicians and equipment.
“Equipment changes can take hours or days to repair, a small disruption,” she said. Boeing’s leading changes to the aircraft are “not out of the rule, but are likely to get more attention in previous issues”.
Besides Southwest, US airlines recently got the 737 Max after its jet back to the skies including Alaska Air Group Inc.
American Airlines Group Inc.
and United Airlines Holdings Inc.
and overseas airlines including Brazil’s Gol Linhas Aereas SA
and Copa Holdings SA of Panama
Boeing shares have risen more than 17% so far this year and 65% in the past 12 months, compared with 9% and 47% gains for the S&P 500 index.
in the same amount of time.