Boeing is cutting production of 737 Max jets as the company moves quickly to finalize a fix that will get the grounded aircraft flying again.
Boeing's monthly production of the aircraft, involved in two crashes since October, is dropping by 20 percent from the current level of 52 a month to 42 a month, the company said Friday.
"We're adjusting the 737 production system temporarily to accommodate the pause in MAX deliveries, allowing us to prioritize additional resources to focus on software certification and returning the MAX to flight," Boeing Chairman and CEO Dennis Muilenburg said in a statement announcing the rate cut. Muilenburg said the aerospace giant is already working with suppliers to, "minimize operational disruption and financial impact of the production rate change."
The production cut is likely to weigh on shares of Boeing which have held up relatively well after initially dropping more than 10% in mid-March after the crash of an Ethiopian Airlines 737 Max 8. It was the second crash of a 737 Max in the last six months and led countries around the world to ground the airplane or ban it from flying in their airspace.