In the deepest trouble in its history, Boeing (NYSE: BA) sold only three passenger jets in the last month, an extraordinary drop from its usual rate. The company delivered 528 commercial jets last year, although some were for cargo transportation. Each of the three sold in June was a 737 Max.
Several accidents likely cause the drop in sales. The most visible was a door that blew out on an Alaska Airlines flight in January. After that, some airline customers delayed orders from Boeing.
Boeing is troubled mainly because “its employees defrauding the FAA during the original certification process for the 737 Max,” according to CNN. Other changes may be pending.
The fallout for Boeing has been considerable. CEO Dave Calhoun was forced out of his job. The stock price has dropped 29% since the start of the year, while the S&P 500 is up 17%. Could Warren Buffett buy Boeing stock?
Boeing’s problems go beyond June’s results. So far this year, it has only received 26 net plane orders.
Where does Boeing go from here? It has very few good options. Appropriately, the airline industry has turned against it, which opens doors for rival Airbus to do multi-year, multi-billion deals. The US government is not done investigating Boeing. Other nations may also investigate and fine it. Boeing also needs to find a long-term CEO who is acceptable to Wall St. and Boeing’s clients.
The Boeing mess will continue for years.
Credit Card Companies Are Doing Something Nuts (Sponsor)
We’ve been writing about ways to make, save, and invest money for over 20 years. But some of the cash back credit card rewards today still make our jaws drop. There are $200 cash bonuses, 3% back on gas and groceries, $0 fees, and even some 5% rewards out there right now. For the average American that could mean hundreds, even thousands of dollars on rewards a year.
Don’t miss out on rewards this good, there is no saying how long they’ll last. Click here to see our top picks.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
