Boeing Stock Falls as BofA Reports Possible Halt in 737 Production Amid IAM Strike

Boeing’s shares experienced a 1% decline on Tuesday following a report from Bank of America indicating that production of the 737 has come to a halt due to a strike by the International Association of Machinists (IAM) union.

This production stoppage has led to a significant reduction in deliveries, with only two 737 jets delivered in the past week, a stark contrast to typical figures, according to data from Aero Analysis Partners.

Bank of America stated that Boeing’s 737 production appears to have completely ceased due to the union strike. While customer acceptance and pre-delivery flights are still progressing, analysts anticipate only four additional deliveries in the near term unless those planes require extra modifications.

Furthermore, there has been no activity involving Chinese airlines for over a month, and plans to reactivate previously stored aircraft have been postponed.

The Boeing 787 program is also seeing setbacks, with only two aircraft delivered since the beginning of September. However, there is an expectation of five more deliveries by the end of the month, as the assembly line in Charleston remains largely unaffected by the strikes.

Boeing’s inventory of undelivered 737s has decreased to 156, down from 190 in the previous month, as reported by the bank.

The overall impact of the strike remains uncertain, but the notable decline in deliveries could create challenges for Boeing. Bank of America has kept a Neutral rating on Boeing’s stock with a price target of $200.