Troubled skies: Boeing says 737 MAX approval delayed to mid-2020

Boeing Co. is telling 737 Max customers that the grounded jet won’t be approved to fly until June or July, months later than previously anticipated, said people familiar with the matter.

The new delay comes after two recent discoveries, a software flaw that will require more work than expected and an audit that found that some wiring on the plane needs to be rerouted. The timetable also includes a buffer for unanticipated complications, said one of the people, who asked not to be named because the discussions are private.

The new expectations mean that Boeing’s best-selling jet would miss the busy summer travel season for the second straight year, adding to the compensation that the U.S. planemaker is likely to pay airlines. The Max was grounded in March 2019 after two deadly crashes that killed 346 people.

Boeing tumbled 5.5% to $306.27 at 2:12 p.m. in New York, before trading was halted for pending news.

The company had estimated previously that the flying ban for the Max would be lifted before the end of 2019. Boeing has to map out its best estimate for the return to flight as the basis for accounting assumptions underpinning its fourth quarter earnings, which will be released due Jan. 29.

The new 737 Max delay was reported earlier by CNBC.

–With assistance from Nathan Crooks and Sebastian Tong.