FAA Orders Inspections of 471 Boeing 737 MAX Jets Over Fuselage Cracks
BA sits 31% above its 52-week low of $176.77 on light trading volume (0.2× avg).
Summary
The FAA has ordered inspections of 471 U.S.-registered Boeing 737 MAX jets for cracks in the fuselage skin around a door reinforcement. Cracks have been found on some 737 models, though not yet on the MAX fleet. Boeing says it extended inspections to the MAX due to similar design and build processes. This adds to a string of quality issues, including a July order over improperly installed seats and a recent window blowout on an older 737 variant. The directive requires visual inspections between 3,000 and 30,000 flights, with immediate repairs if cracks are found. While the FAA did not deem it an urgent safety issue, the scope and potential for grounding or repair costs could disrupt Boeing's production ramp-up to 47 jets per month. The news follows Boeing's Q2 loss and a $280 million charge on the VC-25B program, compounding operational headwinds.
At the time of this announcement, BA was trading at $231.03 on NYSE in the Manufacturing sector, with a market capitalization of approximately $182.6B. The 52-week trading range was $176.77 to $254.35. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.