Introduction

Boeing announced a new manufacturing flaw on its popular 737 Max aircraft, which will result in delayed deliveries. This setback comes as the company faces challenges in meeting the demand for more planes.

The Manufacturing Flaw

Boeing found that fastener holes on the aft pressure bulkhead of some 737 planes were improperly drilled. Spirit Aerosystems, the manufacturer of the fuselages, stated that only certain units were affected due to multiple suppliers being involved.

Impact on Deliveries

As a result of this issue, Boeing will conduct inspections to determine the number of affected airplanes and complete the necessary rework. This will cause a delay in near-term 737 deliveries, although unaffected 737 Maxes will still be delivered.

Boeing’s Manufacturing Challenges

The recently discovered defect is the latest in a series of manufacturing flaws disclosed by Boeing on the 737 Max and other programs. The company is striving to increase production to meet the high demand from airlines during the current travel boom.

Uncertainty in Delivery Forecast

Boeing has not stated whether this new issue will alter its forecast to deliver between 400 and 450 Max jets this year.

Spirit Aerosystems’ Response

Spirit Aerosystems reassured that it will continue delivering fuselages to Boeing. The company is working closely with Boeing to address any affected units within the production system and perform necessary rework. They believe there will be no significant impact on their delivery range for the year.

Comparison with Airbus

Boeing delivered 309 planes to customers this year through July, lagging behind rival Airbus, which delivered 381 planes in the same period.

No Flight Safety Concerns

Boeing clarified that the manufacturing flaw does not compromise flight safety, and airlines can continue operating the planes. The company has notified the Federal Aviation Administration about the issue.

Stock Performance

In after-hours trading, Boeing shares experienced a decline of approximately 3%.