Boeing Co. (BA) - Get Boeing Company Report shares moved lower Monday amid reports that U.S. regulators have warned the planemaker that it may take at least two more years for its 777X widebody to earn certification.
Reuters reported Sunday that the Federal Aviation Administration remains concerned with "safety and certification" standards in the newer version of Boeing's 777 widebody, and denied a request for "Type Inspection Authorization Readiness" from the planemaker last month. The FAA cautioned that it can't "realistically" certify the plane until the middle of 2023, and possibly beyond, Reuters reported.
Boeing CEO Dave Calhoun told investors in April that the company "remains focused on executing this comprehensive series of tests to demonstrate the safety and the reliability of the airplane's design, and we're pleased with the progress that we've made to date", adding that Boeing "still anticipates that the first 777X delivery will occur late in 2023."
Boeing shares were marked 2.9% lower in early trading Monday to change hands at $241.50 each, a move that would trim the stock's year-to-date gain to around 13.5%.
Boeing got a boost earlier this month when U.S. and European officials agreed a truce in their decades-long trade dispute linked to alleged government support for Boeing and its Franco-German rival, Airbus SE (EADSY) - Get Airbus SE Report.
That agreement followed reports that United Airlines (UAL) - Get United Airlines Holdings, Inc. Report is looking to revamp its fleet with the bigger-than-expected order for Boeing's 737 MAX-- which could rise to as high as 150 planes -- as carriers around the world prepare for a surge in leisure and business passenger demand as the global economy moves away from pandemic restrictions on travel, while Southwest Airlines (LUV) - Get Southwest Airlines Co. Report said it would convert nearly three dozen options for the planemaker's 737 MAX aircraft into firm orders as it boosted near-term operating revenue forecasts amid improvements in summer travel bookings.