Boeing Faces New 787 Dreamliner Delivery Delays

Boeing BA paused 787 Dreamliner deliveries Friday after the FAA requested more information about the company’s plans to address previously disclosed production concerns.

The halt in deliveries comes after a recent five-month suspension in handing over the aircraft to customers due to production issues, the Wall Street Journal reported, citing people familiar with the matter. This halt in deliveries is leading to new delays for customers.

It is unclear how long this pause in deliveries will last.

“We continue to work closely with the FAA in a transparent and timely manner,” a Boeing spokesperson told the publication. 

Why It Matters: This temporary pause in deliveries increases the pressure on Boeing’s finances, since customers typically tend to pay the majority of an aircraft’s cost on receipt.

Additionally, the delays disrupt airlines’ plans, particularly as travel demand has been rising with the lifting of COVID-19 restrictions.

American Airlines Group Inc. AAL was set to receive a Dreamliner this week and is now hoping to receive it next week at the earliest, according to the WSJ. 

The FAA fined Boeing $17 million on Thursday over 737 MAX production mistakes, and the company must undertake multiple corrective actions to improve quality control in building the 737.

BA Price Action: Boeing shares were down 1.48% at $247 ahead of the close Friday.