Boeing (BA) shares dropped 3% in early trading on Thursday after a quality problem was detected in its 737 MAX involving supplier Spirit AeroSystems (SPR) that it warned could delay deliveries. Spirit AeroSystems shares tumbled more than 15%.
- Boeing said a quality problem detected in its 737 MAX tied to supplier Spirit AeroSystems could impact deliveries.
- Earlier this year, Boeing had to halt deliveries owing to other quality issues tied to Spirit AeroSystems.
- Shares of Boeing and Spirit AeroSystems dropped in early trading on Thursday following the news.
Boeing reportedly identified fastener holes that did not conform to specifications in the aft pressure bulkhead on some 737 MAX aircraft, and warned it could miss its delivery target of at least 400 737s this year.
This issue is expected to delay the first MAX 8 deliveries to Malaysia Airlines that were due later this month. However, Spirit AeroSystems has claimed that not all 737s will be impacted because it uses different suppliers for manufacturing aft pressure bulkheads.
Earlier this year, Boeing had to halt deliveries in April owing to other quality issues tied to Spirit AeroSystems. At the time, the problem involved the installation of fittings, which joined the aft fuselage to the vertical tail and were incorrectly attached to the fuselage structure. The issue affected a number of 737 MAX family models, which included the MAX 7, MAX 8, and MAX 8200. The P-8 Poseidon maritime surveillance aircraft based on the 737 NG was affected as well.
Despite Thursday's dip, Boeing shares are close to 13% higher year-to-date, while Spirit AeroSystems shares lost more than one-third of their value.