Boeing shares plunge as Delta sees 'bubble' of used wide-body jets

Chicago

BOEING Co tumbled the most in almost a year after Delta Air Lines chief executive officer Richard Anderson said there was a surge of wide-body models coming off lease, creating investor concern that the planemaker faces pressure on pricing for new aircraft.

A used-jet glut would pinch Boeing on planes like the twin-aisle 777, one of the company's biggest sources of profit, said George Ferguson, senior air transport analyst with Bloomberg Industries. Boeing may also find it tougher to generate 777 sales needed to sustain output at 8.3 jets per month as it transitions to an upgraded model known as the 777X, he said.