Boeing shares fall after software glitch reported on 737 MAX

TDT | Manama

Email: mail@newsofbahrain.com

Boeing shares fell sharply on Monday after reports of a newly disclosed software glitch affecting flight computers on some 737 MAX aircraft raised fresh concerns over the company's manufacturing quality and certification timeline.

Boeing shares dropped as much as 5% in early New York trading before paring losses to trade about 3% lower at $192.98. Shares of aerospace rivals GE Aerospace and RTX remained largely unchanged.

The decline followed a Wall Street Journal report that a software bug in versions 14 and 14.1 of the 737 MAX flight management computer can cause parts of the automated flight guidance system to disengage.

According to company documents, the problem can occur during a specific landing scenario when pilots change their planned flight path immediately after aborting a landing, known as a "go-around." In such circumstances, certain vertical navigation and autopilot functions can become unavailable, requiring pilots to manually fly the aircraft at low altitude.

Boeing said it discovered the issue and notified operators in late August. The company stressed that the defect does not pose an immediate safety risk and said existing pilot procedures provide guidance for handling such situations.

A Boeing spokesperson said engineers are working on a permanent software fix.

The disclosure has prompted concerns among major US airlines. Southwest and United have reportedly told Boeing they will not accept new MAX aircraft delivered with the affected software and have requested an earlier software configuration.

The Federal Aviation Administration said it is aware of the issue and is working with Boeing and affected airlines. The problem could also further complicate certification of Boeing's MAX 7 and MAX 10 variants.