News

Latest News

Stocks in Play

Dividend Stocks

ETFs

Breakout Stocks

Tech Insider

Forex Daily Briefing

US Markets

Stocks To Watch

The Week Ahead

SECTOR NEWS

Commodites

Commodity News

Metals & Mining News

Crude Oil News

Crypto News

M & A News

Newswires

OTC Company News

TSX Company News

Earnings Announcements

Dividend Announcements

Boeing Warns Of New 737 Max Issue That Will Delay Airplane Deliveries

Boeing Co. (BA) has warned that a new manufacturing flaw in its 737 Max aircraft is likely to delay deliveries to customers worldwide.

The Arlington, Virginia-based company said it found fastener holes on the aft pressure bulkhead on some 737 Max aircraft are improperly drilled, leading to needed repairs and delays.

In a statement, Boeing said: “This issue will impact near-term 737 deliveries as we conduct inspections to determine the number of airplanes affected…”

The company said the bulkhead issue does not constitute a safety issue and that airlines can continue flying the aircraft. Boeing said that it has notified the Federal Aviation Administration (FAA) of the problem.

Still, the defect is the latest in a string of manufacturing problems that have plagued Boeing in recent years even as it has tried to ramp up production to meet strong demand from airlines.

In July of this year, Boeing announced that it is raising its monthly production to 38 aircraft from 31 previously.

Boeing didn’t say whether the new problem will change its forecast to deliver between 400 and 450 737 Max aircraft to customers this year.

Through the end of July, Boeing delivered 309 planes to customers, trailing the 381 delivered by rival Airbus (AIR) during the same period.

Boeing’s stock has risen 40% in the last 12 months to trade at $228.58 U.S. per share.