Boeing reported a sharp drop in second-quarter commercial plane deliveries on Tuesday as the grounding of 737 MAX planes weighs on profits. Boeing, which has halted deliveries of the top-selling plane since mid-March, reported 90 deliveries in the quarter ending June, down from 194 in the year-ago period, a decline of 54 percent, with a big drop in 737 planes accounting for the difference.
Plane deliveries are tied to company revenues and closely monitored by Wall Street. Leading analysts have slashed their profit forecasts for Boeing due to the 737 MAX crisis, which has halted deliveries and forced the company to store planes after they are manufactured. Boeing has developed a software upgrade after problems with a flight handling system were tied to Lion Air and Ethiopian Airlines crashes that together claimed 346 lives. But the jet has still not been cleared by regulators to resume work.
The Federal Aviation Administration last week identified a fresh problem during simulator testing, further clouding the outlook for the plane's return to service. Boeing shares fell 0.4 percent to $349.64 in mid-morning trading.
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