Top Stories
Top Stories
Markets

Boeing slides on report the 737 Max could remain grounded into crucial holiday travel season

Key Points
  • There is friction between federal regulators and Boeing as the aerospace company tries to get the 737 Max recertified, The Wall Street Journal reports.
  • The Max has been grounded since mid-March following two fatal crashes.
  • Boeing, which has a market cap of about $200 billion, has seen its share price fall roughly 20% since early March.
An aerial photo shows Boeing 737 MAX airplanes parked on the tarmac at the Boeing Factory in Renton, Washington, March 21, 2019.
Lindsey Wasson | Reuters

Shares of Boeing fell 2.7% on Tuesday after The Wall Street Journal reported that the 737 Max may not be back in service in time for holiday travel.

The report said Federal Aviation Administration officials are frustrated with the level of cooperation from Boeing as it tries to get its plane approved to fly once again. The Max has been grounded since mid-March following the second of two fatal crashes.

Major airlines have been pushing back their target dates for bringing the plane back into their fleets, including Southwest and several foreign airlines saying they don't expect the Max to return until 2020. United and American Airlines have canceled flights with the Max until December.

VIDEO2:4602:46
United pushes back Boeing 737 Max return to Dec. 19, 2019

American said that extending the delay of the 737 Max through November would result in about 140 flights per day being canceled.

The FAA announced in June that it had found an additional issue in the Max that Boeing needed to address before it allowed the plane to fly again.

"The FAA is following a thorough process, not a prescribed timeline, for returning the Boeing 737 Max to passenger service. The FAA will lift the aircraft's prohibition order when we deem it is safe to do so," the agency said in a statement at the time.

Boeing, which has a market cap of about $200 billion, has seen its share price fall roughly 20% since early March.

Here is the full WSJ report.