Boeing May Face Billions More in Losses as MAX Crisis Deepens - Analysts
WASHINGTON (Reuters) – Boeing Co may have to book billions of dollars in additional charges, two brokerages said on Monday, following latest developments around the planemaker’s grounded 737 MAX jet that calls into question the timing of the aircraft’s return to service.
Credit Suisse and UBS downgraded the stock after reports on Friday showed internal messages between two Boeing employees stating that the plane’s anti-stall system behaved erratically during testing before the aircraft entered service.
The new revelations pose fresh challenges for Boeing, which is reeling under pressure after two fatal crashes forced the company to ground the planes and book billions of dollars in losses.
Boeing’s shares fell 2% to $337.20 in premarket trading on Monday, adding to their 18% decline since the second deadly crash of the popular single-aisle jet in Ethiopia.
Although Boeing continued producing the planes, albeit at a lower rate, the brokerages said there is an increasing possibility that the company may have to halt production altogether.
Credit Suisse and UBS downgraded the stock after reports on Friday showed internal messages between two Boeing employees stating that the plane’s anti-stall system behaved erratically during testing before the aircraft entered service.
The new revelations pose fresh challenges for Boeing, which is reeling under pressure after two fatal crashes forced the company to ground the planes and book billions of dollars in losses.
Boeing’s shares fell 2% to $337.20 in premarket trading on Monday, adding to their 18% decline since the second deadly crash of the popular single-aisle jet in Ethiopia.
Although Boeing continued producing the planes, albeit at a lower rate, the brokerages said there is an increasing possibility that the company may have to halt production altogether.