Boeing’s plane deliveries fell amid production cap, regulatory scrutiny (NYSE:BA)

Boeing (NYSE:BA) on Tuesday said plane deliveries fell 55% from a year earlier to 29 in March as output of its best-selling 737 Max slowed because of quality checks and regulatory scrutiny.

The U.S. Federal Aviation Administration in January imposed a cap on Boeing’s (BA) production of the 737 Max after a door plug blew out on a plane operated by Alaska Airlines (ALK). The agency restricted output to 38 jets a month.

Last month’s deliveries lifted its first-quarter total to 83, including 66 of the 737 Max narrowbody jet. Eight of those 737s went to customers in China, which in January permitted Boeing (BA) to resume deliveries after several years of restrictions.

Boeing (BA) last year delivered 130 commercial planes during the first quarter amid its ongoing effort to recover from a deep slump during the pandemic.

After stripped cancellations and conversions, Boeing (BA) in the first quarter received a net total of 126 orders. With adjustments for backlog quality, the company reported net orders of 125 planes during the three-month period.