Boeing 737 MAX airplanes, along with one Boeing 787 at top, are parked at Grant County International Airport October 23, 2019 in Moses Lake, Washington. Boeing reported that its profits were down by more than half in the latest quarter.
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Boeing is weighing a halt or further cuts to its production of the 737 Max amid continued uncertainty about the plane’s return to service, The Wall Street Journal reported on Sunday, citing people familiar with the matter.
However, the aerospace giant increasingly views a pause in production as the most viable option, according to the Journal. Boeing’s board is meeting in Chicago on Sunday and a decision could come as soon as Monday.
FAA chief Steve Dickson told CNBC on Wednesday that the regulator likely wouldn’t clear the 737 Max’s return until some time in 2020, shooting down any hope by Boeing to get the plane back in service by the end of this year.
“Like I said there are a number of processes, milestones, that have to be completed,” Dickson told CNBC’s Phil Lebeau on “Squawk Box. “If you just do the math, it’s going to extend into 2020.”
The timeline for the 737 Max’s return has slipped repeatedly, creating uncertainty for airlines such as Southwest and American. The plane’s grounding has cost the airlines hundreds of millions of dollars in revenue.
“We continue to work closely with the FAA and global regulators towards certification and the safe return to service of the MAX,” Boeing told CNBC in statement Sunday. “We will continue to assess production decisions based on the timing and conditions of return to service, which will be based on regulatory approvals and may vary by jurisdiction.”
Boeing previously cut production in April by 20% from 52 aircraft a month to 42 a month in the wake of a second fatal crash in six months. Regulators around the world responded to those crashes by grounding the aircraft.
The aircraft maker warned investors in July that the company could further cut or suspend production if the delays get worse.
— CNBC’s Leslie Josephs contributed to this report
