Boeing slides after report says the 737 Max will be out of commission until at least August
- Boeing shares fell 2% after reports said the 737 Max will be grounded until at least August.
- The timeline for the aircraft's return to services was highlighted Tuesday by the head of the airline industry's trade group.
- Watch Boeing trade live.
Boeing's 737 Max aircraft will be out of commission until at least August, according the head of an industry trade group. The story was first reported by Heekyong Yang of Reuters. Boeing shares slid down more than 2% on the news.
"We do not expect something before 10 to 12 weeks in re-entry into service," said Alexandre De Juniac, CEO of the Montreal-based International Air Transport Association (IATA). The IATA represents 290 airlines or 82% of total air traffic.
"We are preparing a meeting between regulators, the aircraft manufacturer and the operators to make an assessment of the situation. But it is not in our hands. It's in the hands of regulators," De Juniac added.
Boeing has had a difficult 2019, dealing with the fallout of two 737 Max crashes within six months. In March, the aircraft was grounded globally, despite initial resistance from the planemaker.
In addition, the company reported a hit to profits and was fiercely criticized for its handling of the crisis. Regulators have also come under pressure for Boeing's outsized role in pushing through rapid regulatory approval for the aircraft.
Boeing has slowed production of the 737 Max amidst a sharp decline in orders. In March, new orders ground to a halt, down sharply from 112 orders in the first quarter of 2018. The company also suspended its financial forecasts on its last earnings call due to uncertainty from the 737 Max fallout.
And on Wednesday, Boeing CEO Dennis Muilenburg said the company is planning the 737 Max's comeback, noting the company has already taken actions, such as a software upgrade, to ensure the safety of the aircraft. The comments were made at the Bernstein Strategic Decisions Conference.
"We know ... that the public's confidence has been hurt by these accidents and that we have work to do to earn and re-earn the trust of the flying public and we will do that," Muilenburg told investors at the conference, according to CNBC.
Boeing is up 8% this year.
