Boeing’s 737 Production Cut Hits Its Shares and Those of Suppliers

Employees work on Boeing 737 MAX airplanes at the Boeing Renton Factory in Renton, Washington on March 27, 2019. - Embattled aviation giant Boeing will do all it can to prevent future crashes like the two that killed nearly 350 people in recent months, a company official said. Boeing gathered hundreds of pilots and reporters at its factory to unveil a fix to the flight software of its grounded 737 MAX aircraft, which has been implicated in the latest air disasters. (Photo by Jason Redmond / AFP) Photo credit should read JASON REDMOND/AFP/Getty Images

PARIS (Reuters) - Shares of Boeing Co fell 5 percent on April 8 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 percent lower, while Triumph Group dropped 6 percent. European suppliers such as Meggitt, Melrose, and Safran fell between 0.4 percent and 2 percent.