Boeing Co on Wednesday confirmed a halt on 737 MAX deliveries after electrical problems re-grounded part of the fleet, and voiced concerns over a surging pandemic in India and U.S.-China political tensions.

Reuters reported on April 16 that Boeing stopped delivering its cash cow single-aisle 737 MAX after the electrical grounding problem – months after the plane returned to service following a lengthy safety ban.

Boeing’s shares fell nearly 2.6% after the U.S. planemaker reported its sixth straight quarterly loss and a charge on its high-profile Air Force One presidential jet program.

The barrage of technical and financial challenges clouded optimism over a resurgent U.S. domestic travel market fueled by vaccinations and pent up demand.

“We view 2021 as a critical inflection point for our industry,” Chief Executive Dave Calhoun told analysts on a conference call.

Boeing has paused 737 MAX deliveries to address the electrical issues, and expects to “catch up on deliveries over the balance of the year,” Calhoun added.

But Calhoun said he could not predict when the 737 MAX’s electrical grounding issue would be resolved, and doubled down on fears of a long-off recovery of international travel, citing the pandemic’s impact and tensions between Washington and Beijing.

He also said he expects China to lift its grounding order on the 737 MAX in the second half of 2021.

Reuters

Photo Rob Vogelaar