Boeing's Retail Traders Split After Transportation Secretary Says FAA Not Ready To Remove 737 MAX Production Cap
Following a trip to the Boeing manufacturing facility in Renton, Washington, Duffy said that Boeing has lost the trust of Americans.
Boeing (BA) stock was in focus after U.S. Transportation Secretary Sean Duffy said on Friday that the Federal Aviation Administration is not prepared to lift a monthly production cap of 38 737 MAX aircraft.
Following a trip to the Boeing manufacturing facility in Renton, Washington, Duffy said at the Faulkner Focus program at Fox News, that Boeing has lost the trust of Americans.
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"When you breach the trust of the American people with that safety and with your manufacturing, we're going to put the screws to you to make sure you change your ways,” Duffy said.
Boeing was imposed with a production cap after a door plug blew out of an Alaska Airlines 737 MAX aircraft in January 2024. Duffy said Boeing was not producing 38 MAX aircraft per month.
President Donald Trump does not want to take risks regarding passenger safety, Duffy said, before adding, “He wants us to be smart and loosen up the restrictions on production with Boeing when it's appropriate."
Last week, Boeing revealed that its February deliveries surged 63% from last year to 44. The figure includes 31 of the company’s best-selling 737 MAX planes. The month also witnessed 13 orders and eight cancellations.
The latest figure brings Boeing’s 2025 total to 89, up from 54 in the same period a year ago.
According to Fitch ratings, the aircraft manufacturer has made early progress in resuming production after last year’s strike, reducing legacy inventory, and managing supply chains.
Retail sentiment on Stocktwits remained in the ‘neutral’ (48/100) territory while retail chatter was ‘normal.’
One user viewed Duffy’s visit positively and said it will just be weeks or months before the stock reaches new heights.
However, another user expected to see a significant decline in share prices.
Over the past year, Boeing stock has fallen 11.1%.
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