Shares of Boeing fell 5 per cent after the company said it would cut production of its 737 MAX aircraft, as it struggles with worldwide grounding of the narrowbody jet following two fatal crashes in less than five months.
The production cut also weighed on shares of Boeing’s suppliers across the globe. Spirit AeroSystems was 7 per cent lower, while Triumph Group dropped 6 per cent . European suppliers such as Meggitt, Melrose and Safran fell between 0.4 per cent and 2 per cent .
The crash in Ethiopia last month and the crash of a Lion Air plane in Indonesia in October that killed all on board have left the world’s largest planemaker facing the worst crisis in its history, with several airlines deciding to hold off taking deliveries.
On Friday, the company cut its monthly 737 production by nearly 20 per cent , signaling it did not expect aviation authorities to allow the plane back in the air anytime soon.