Boeing warned on Wednesday that it might have to shut down the 737 MAX production line altogether if the best-selling aircraft encountered new obstacles in securing global regulatory approval to resume flying, after reporting its biggest quarterly loss in history, as the cost of resolving the 737 MAX problem soared.
Boeing Chief Executive Dennis Muilenburg said he was confident that MAX would resume service in October, but for the first time admitted that Boeing might have to suspend production of 737 MAX aircraft, a step Boeing commercial aircraft had never taken in more than 20 years.
Boeing, the world's largest aircraft manufacturer, has again delayed 777X wide-body aircraft plans, delaying its first flight to 2020 due to GE (GE.N) engine problems.
Before Muilenburg's speech, Boeing posted its biggest quarterly loss in history of nearly $3 billion, which turned from profit to loss, and the company spent $1.01 billion in cash.
Boeing's share price fell only slightly after its second-quarter earnings, but fell 3% after Muilenburg said it might further reduce production or temporarily suspend production.
Muilenburg said that currently 737 aircraft production is 42 per month, the company is considering further reduction in production; if necessary, it may even stop production. Boeing has not taken such a step since 1997, when it stopped production of 747 models and delayed the launch of 737 new models in order to keep suppliers up with production progress.
Muilenburg said that Boeing has made progress in the business development of new and medium-sized aircraft (NMA), but commercial flight of MAX aircraft remains "the first priority".
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