Boeing’s troubles with its 737 Max jets, which have been grounded since mid-March, are expected to sap growth out of the broader U.S. economy during the second quarter, according to a new Wells Fargo forecast.
American, Southwest and United have canceled thousands of Max flights and extended cancellations into peak summer travel months. Boeing said it’s completed 96 test flights totaling over 159 hours of air time with a new software fix, and expects to submit the plan to the Federal Aviation Administration in a couple weeks.
“When a fix is approved and deliveries resume, we would expect production to also increase and for new orders to pick up. We could see a slight boost to growth in the second half of the year, but the precise timing will depend on how quickly confidence can be restored in the 737 MAX,” the report said.