More trouble for Boeing: Shareholders sue over 737 MAX crashes, disclosures


Still, Boeing is ahead of its European rival Airbus, which last week said it had won 62 gross orders during the first three months of 2019, but some 120 cancellations left it with a negative net order.

Boeing is cutting production of the 737 MAX 8 by 19% from 52 planes per month to 42 beginning in mid-April while it continues work on a software fix to avoid the malfunction that resulted in two fatal crashes of passenger planes, Boeing CEO Dennis Muilenburg announced Friday in a statement.

Since the Boeing 737 Max 8 was grounded in the United States on 13 March, American Airlines has cut 1,200 flights and has extended cancellations through its second quarter to 30 June, which will affect about 90 flights a day.

"The JATR team will evaluate aspects of the 737 MAX automated flight control system, including its design and pilots' interaction with the system, to determine its compliance with all applicable regulations and to identify future enhancements that might be needed, " it said.

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In the first quarter of a year ago, Boeing took 122 orders for 737s, including 112 for the Max, led by large orders from Southwest Airlines and Ireland's Ryanair. First-quarter deliveries of all 737s including Max models fell to 89 from 132 in the same period past year.

The spokesperson said the carrier originally planned to add 11 more Boeing 737 MAX aircraft in 2019, but this is now under consideration.

Boeing said on Friday it would cut monthly production of the 737 Max jets by 20 per cent, starting mid-April, without giving an end-date. Meanwhile, airlines that own the almost 400 Max jets are cancelling flights.

Many analysts believe the deliveries will only be delayed, not lost forever, unless airlines cancel orders for the plane.

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It follows a similar incident on a Lion Air flight which crashed in Indonesia five months before, killing 176 people. Boeing hasn't described the second issue but says it is not related to the anti-stall system. On Tuesday, American Airlines cut a key revenue estimate after canceling 1,200 flights in the first quarter due to the grounding of its 24 Max jets.

American Airlines' share price fell by 2.8% to $32.94 in early trading.

Because it is still unclear when the MAX jets will begin flying again, American said it can not yet forecast the cost of the disruption beyond the first quarter.

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