Boeing shares fell sharply Monday after the company confirmed a software problem affecting certain 737 MAX aircraft could temporarily prevent pilots from accessing automated flight guidance during a specific landing situation.
Boeing stock was down about 5% in afternoon trading, making it one of the biggest decliners in the Dow, after a report from The Wall Street Journal revealed the issue over the weekend.
Boeing Confirms Software Problem
Boeing said it notified 737 operators last month after identifying the software issue.
The company said the problem could leave pilots without automated flight guidance during a particular landing scenario. Boeing has provided airlines with information reinforcing existing procedures for safely handling the situation while engineers work on a permanent software fix.
The company did not say that the glitch had caused an accident.
The Federal Aviation Administration is also reviewing the issue. The agency said it is aware of a potential problem involving a software update for flight computers on certain 737 MAX aircraft and is working with Boeing and airlines.
The FAA plans to convene a Corrective Action Review Board to examine the matter and said it will take immediate action if the review identifies a safety concern.
New MAX Models Face Added Scrutiny
The software issue comes at an important point for Boeing’s 737 MAX program.
The company is preparing to bring the final two members of the MAX family, the 737 MAX 7 and MAX 10, into commercial service. Boeing has a substantial order backlog for the narrowbody jets, making regulatory approval and deliveries important to its recovery plans.
The MAX 7 received FAA approval last month with the new software installed.
The latest development could complicate that rollout as airlines and regulators examine whether changes are needed before additional aircraft enter service.
Airlines Push Back on Software
Industry officials told The Wall Street Journal that Southwest Airlines and United Airlines have told Boeing they do not want to accept new 737 MAX aircraft fitted with the software in question.
Instead, the airlines reportedly asked Boeing to use an earlier version of the software.
That response highlights the pressure facing Boeing as it works to address the issue while maintaining deliveries of its best-selling narrowbody aircraft.
Boeing Stock Is Down Nearly 15% This Year
Monday’s selloff adds to a difficult year for Boeing investors.
With the latest decline, Boeing shares are down nearly 15% since the beginning of the year.
The immediate focus will now be on Boeing’s software fix and the FAA’s review. Any additional findings from regulators could determine whether the issue remains a limited software problem or leads to broader changes for aircraft already in service and those awaiting delivery.
For now, Boeing says pilots have existing procedures for handling the affected landing scenario while its engineers work on a permanent update.
