FAA probing Boeing 787 Dreamliner manufacturing issues
Yahoo Finance's Emily McCormick joins Kristin Myers to discuss the latest on Boeing, as the FAA begins to investigate manufacturing flaws in some of the company's 787 Dreamliners.
Video Transcript
KRISTIN MYERS: Well, the FAA is investigating manufacturing flaws in the Boeing 7-- sorry, 787, excuse me, jetliners. So for more on that, we're joined now by Yahoo Finance's Emily McCormick. Hey, Emily.
EMILY MCCORMICK: Hi, Kristin. And as you mentioned, the FAA is looking into the production and manufacturing of the 787 Dreamliner. This coming as Boeing today said it discovered a new manufacturing issue with this jet. Now, this one involves the way that parts were secured when making the jet's horizontal stabilizers. Those are those small wings in the tail of the aircraft.
Now, this issue impacted jets that had not yet been delivered to customers. But it does add to a list of other concerns that Boeing has highlighted with this particular jet over the past couple of weeks. The company late last month did ground eight of the 787 Dreamliners after finding issues in fuselage sections here.
Now, Boeing has been inspecting these and these new issues. Those are expected to impact deliveries of the 787 in the near term. As of the end of August, Boeing have reported 526 unfilled orders for the twin-aisle 787 Dreamliner. It also delivered a four of those in August.
Now, important here because the Dreamliner has become increasingly important for Boeing, with the 737 MAX still grounded globally since March of 2019. With the FAA now looking into this as well, some of that is going to continue weighing on the stock here. We do see shares down about 5% in intraday trading.
KRISTIN MYERS: And I'd almost tripped over myself saying 787 when I was thinking 737, because cancellations are on the rise for that plane as well. Are they not?
EMILY MCCORMICK: That's right. So we did Boeing announcing today separately that it secured its first orders for the 737 MAX in 2020. That was for five orders between two different customers. But at the same time, it also booked 17 cancellations. So on net, it still did lose orders for this jet.
Still seeing some pressure here with the 737 MAX fallout, after those two fatal crashes that we've had over the past two years, now along with the decreased travel demand on that passenger jet side. So still quite a few macro things that are weighing on Boeing's stock. Kristin?
