SEOUL: The International Air Transport Association (IATA) expects it could take until August before the Boeing 737 MAX returns to service, the airline group’s head said on Wednesday, adding that the final say on the timing rested with regulators.
The 737 MAX was grounded globally in March after a crash in Ethiopia killed all 157 people on board, the model’s second deadly crash in five months.
“We do not expect something before 10 to 12 weeks in re-entry into service,” IATA Director General Alexandre de Juniac told reporters in Seoul. “But it is not our hands. That is in the hands of regulators.”
IATA plans to organize a summit with airlines, regulators and the manufacturer in 5 to 7 weeks to discuss what is needed for the 737 MAX to return to service, he said.
At an IATA meeting in Montreal last week, airline members said they wanted regulators to cooperate closely on the decision for the plane’s re-entry to service, de Juniac said.
“We hope that they will align their timeframe,” he said of regulators.
The Federal Aviation Administration (FAA) expects to approve the jet’s return to service as soon as late June, representatives of the US air regulator informed members of the United Nations’ aviation agency in a private briefing last week, sources told Reuters.
US operators United Airlines, Southwest Airlines, and American Airlines have removed the planes from their flight schedules until early to mid-August.
Boeing 737 MAX may not return to service until August: IATA head
Boeing 737 MAX may not return to service until August: IATA head
- The 737 MAX was grounded globally in March after a crash in Ethiopia, the model’s second deadly crash in five months
- Airline members want regulators to cooperate closely on the decision for the plane’s re-entry to service
Closing Bell: Saudi stocks slip as Tadawul falls 1% amid broad market weakness
RIYADH: Saudi stocks fell sharply on Tuesday, with the Tadawul All Share Index closing down 108.14 points, or 1.03 percent, at 10,381.51.
The broader decline was reflected across major indices. The MSCI Tadawul 30 Index slipped 0.78 percent to 1,378.00, while Nomu, the parallel market index, fell 1 percent to 23,040.79.
Market breadth was strongly negative on the main board, with 237 stocks falling compared to just 24 gainers. Trading activity remained robust, with 164.7 million shares changing hands and a total traded value of SR3.19 billion ($850.6 million).
Among the gainers, SEDCO Capital REIT Fund led, rising 2.73 percent to SR6.77, followed by Chubb Arabia Cooperative Insurance Co., which gained 2.69 percent to SR20.20.
National Medical Care Co. added 1.72 percent to close at SR141.60, while Alyamamah Steel Industries Co. and Thimar Advertising, Public Relations and Marketing Co. advanced 1.57 percent and 1.13 percent, respectively.
Losses were led by Al Masar Al Shamil Education Co., which tumbled 8.36 percent to SR24.65. Raoom Trading Co.fell 6.75 percent to SR64.20, while Alkhaleej Training and Education Co. dropped 6.60 percent to SR18.12 and Naqi Water Co. declined 5.51 percent to SR54.00. Gulf General Cooperative Insurance Co. closed 5.44 percent lower at SR3.65.
On the announcement front, Chubb Arabia Cooperative Insurance Co. signed a multiyear insurance agreement with Saudi Electricity Co. to provide various coverages, expected to positively impact its financial results over the 2025–2026 period. The deal will run for three years and two months and is within the company’s normal course of business.
Meanwhile, Bupa Arabia for Cooperative Insurance Co. announced a one-year health insurance contract with Saudi National Bank, valued at SR330.2 million, covering the bank’s employees and their families from January 2026. Despite the sizable contract, Bupa Arabia shares fell 0.8 percent to close at SR137, weighed down by the broader market weakness.
In contrast, United Cooperative Assurance Co. revealed an extension of its engineering insurance agreement with Saudi Binladin Group for the Grand Mosque expansion in Makkah. The contract value exceeds 20 percent of the company’s gross written premiums based on its latest audited financials and is expected to support results through 2026. However, the stock came under selling pressure, ending the session down 4.51 percent at SR3.39.
