Why Aerospace Giant Boeing Shares Are Falling Today

Boeing Company BA shares are trading lower following news that the production timeline for its flagship 737 narrowbody aircraft is expected to extend by two months beyond the initial schedule.

Boeing is now aiming to ramp up to a rate of 42 of 737s per month by February 2024, according to a news report by Reuters, citing certain anonymous sources. 

This update was shared with Boeing's suppliers last week as part of a new master production schedule, the report added.

Boeing and its main competitor, European aerospace company Airbus SE EADSY, have both set aggressive targets to ramp up production, especially of their popular single-aisle aircraft models, in response to increasing customer demand, the report read. 

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Nevertheless, both manufacturers are facing challenges due to supply chain issues and production delays that have hindered their ability to meet these goals, Reuters reported.

Further increases have also been rescheduled: the target of 47.2 jets per month has been moved from June to August 2024, and the plan to reach 52.5 jets per month is now set for February 2025 instead of December 2024, according to the report.

Additionally, Boeing's objective to return to its pre-pandemic production level of 57.7 aircraft per month is now projected for October 2025, marking a three-month delay from the originally planned July 2025. 

These adjustments reflect the ongoing challenges and complexities Boeing faces in scaling up production.

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Price Action: BA shares are trading lower by 1.22% to $234.01 on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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