Boeing Stocks Decline After Quality Issue Found on 737 MAX Models

Paigambar Mohan Raj
Source: Reuters

Boeing stocks fell 4.5% during premarket trading on Friday. The American aircraft manufacturer reported a new supplier quality problem. The issue has led to the halt of deliveries of some Boeing 737 MAX models.

On the other hand, Spirit, the company that manufactures some of the parts for the Boeing 737 MAX, saw its stocks fall by 11.7%. The firm manufactures the fuselage, thrust reversers, engine pylons, and wing components for the 737 MAX. The most recent problem with quality involves Spirit’s aft fuselage fittings which may have begun in 2019.

According to a JP Morgan analyst, Seth Seifman, the negative financial impact is more hurtful at Spirit than at Boeing. According to Boeing, the problem will impact a number of 737 MAX aircraft, in production and in storage. The company believes the issue will lead to lower 737 MAX deliveries in the short term. Nonetheless, the aviation giant said that the problem is not a safety of flight issue, and planes in service can continue their operations.

This is not the first time Boeing has faced issues with its 737 MAX models. The aircraft was grounded globally in 2019, after two crashes, one in Indonesia in 2018, and one in Ethiopia in 2019, took the lives of 346 people combined.

Did Jim Cramer jinx Boeing stocks?

The fall of Boeing stocks follows Jim Cramer‘s tweet from earlier today that “Boeing’s really incredible.” Cramer is the host of CNBC’s Mad Money show and is famous for making calls that go wrong.

Nonetheless, Cramer’s comment could be a sarcastic reaction to the news. However, Twitter users did not miss the opportunity to mock the popular host.

In 2022, Cramer famously said that Facebook‘s parent company, Meta‘s stock had nowhere to go but up. Little did Cramer and his following expected that Meta stocks would fall more than 70% over the year. Regardless, Boeing seems to have a new problem on its hands as it deals with delayed deliveries and falling stock prices. At press time, Boeing was trading at $202.50 in the pre-market.