Boeing Shares Are Trading Lower Thursday: What's Going On?

Boeing Co BA shares are trading lower Thursday after the company warned of delivery delays due to a manufacturing defect. 

What Happened: Near-term deliveries of Boeing's 737 MAX jets could be delayed due to a quality issue with supplier Spirit Aerosystems Holdings Inc SPR. 

In a statement posted late Wednesday, Spirit Aerosystems said the issue involves elongated fastener holes on the aft pressure bulkhead on certain models of the 737 fuselage that it produces. 

"Spirit has implemented changes to its manufacturing process to address this issue. We are working closely with our customer to address any impacted units within the production system and address any needed rework," the company said.

Boeing determined that there are no immediate safety issues as a result of the manufacturing defect and that its current in-service fleet may continue to operate as normal. However, Wall Street analysts suggested that Boeing may now be reevaluating its 737 2023 delivery target of 450 planes, per Reuters. 

"It is early days on both the near and long-term financial impacts of the issue, but it appears the fix is likely to take several weeks for completed aircraft," Citi analyst Jason Gursky reportedly said in a new note.

See Also: Supplier Spirit Aerosystems Issue Delays Boeing's 737 Deliveries

BA Price Action: Boeing shares were down 3.83% at $219.76 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Boeing.