BA stock is in the red today as Boeing (NYSE:BA) continues to feel the effects of the worldwide grounding of its bestselling 737 MAX aircraft following two fatal crashes in Indonesia and Ethiopia.
BA Stock in the Red as Gap Opens With Rival
It’s been reported today that Boeing took 10 new plane orders last month but saw an increase in the number of customers opting for more widebody planes as uncertainty over when the 737 MAX will return to the skies continues. Net orders so far this year came to just 45 at the end of October, down from 56 in September, further widening the gap on sales this year with the company’s European rival Airbus SE (OTCPK:EADSF), which has now sold nearly 500 more planes. BA stock is down over 16% since a March peak of $432.86.
Boeing was forced to halt deliveries of the 737 MAX, of which 4,400 aircraft are now piling up in several storage facilities across the US, following the worldwide ban back in March. The Seattle-based planemaker said it hopes to resume deliveries of the aircraft as early as next month, pending regulatory approval. The FAA is currently reviewing Boeing’s software changes to the 737 Max, which aims to make the system responsible for both crashes less aggressive. BA shares are currently trading at $362.88.
In its Q3 earnings call last month, Boeing reported a 50% slide in quarterly profits, considerably worse than analysts’ expectations. The aerospace giant’s revenue of $19.98 billion USD, which slid 20%, wasn’t as bad as feared on Wall Street but would have been significantly worse without the company’s strong defense and space sales. The company did not provide an update to its full-year sales forecast, after suspending the outlook earlier this year. BA stock has gained 7% since the results, as Boeing remains confident that the 737 MAX will be back flying before the end of the year.
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