Boeing has recently informed several customers of potential delays affecting its popular 737 MAX aircraft, which could result in delivery schedules being pushed back by several months. This development could impact deliveries initially slated for 2025 and 2026, posing yet another challenge for the aerospace giant.
Delivery Delays Confirmed
Reports from Bloomberg and Reuters, citing sources familiar with the situation, confirm that Boeing has cautioned customers about possible delays for the 737 MAX, with affected aircraft expected to arrive three to six months later than planned. This setback comes at a time when the company is striving to maintain its delivery schedules amidst various operational challenges.
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In the second quarter of 2024, Boeing delivered 70 units of the 737 MAX, contributing to a total of 137 year-to-date (YTD). The company’s second-quarter financial results, set to be released on July 31, 2024, will provide further insights into its performance amid these ongoing issues.
During the same quarter, Boeing also delivered six 767F, seven 777F, and nine 787 aircraft, totaling 92 aircraft delivered in Q2 and 175 YTD. However, deliveries were temporarily disrupted due to China halting processes to review batteries in cockpit voice recorders across all Boeing aircraft. In June, Boeing managed to deliver four aircraft to China: one 737 MAX each to 9 Air and ICBC Leasing, and two 777Fs to Air China Cargo.
By comparison, in Q2 2023, Boeing had delivered 136 aircraft, including 103 units of the 737 MAX, five 777F, and 20 787, totaling 216 737 MAX, one 747-8F, nine 767F, nine 777F, and 31 787 in the first six months of 2023.
Prospects for Improvement in 2025
Brian West, Boeing’s Chief Financial Officer (CFO) and Executive Vice President of Finance, expressed optimism at the Wolfe Research Global Transportation & Industrials Conference in late May. West indicated that Boeing expects to enter 2025 in a more stable position, having strengthened quality and safety foundations within its manufacturing processes. This includes the definitive agreement to acquire Spirit AeroSystems, a key supplier, positioning Boeing for better performance in the coming years.
West also highlighted that Boeing produced fewer than 38 737 MAX aircraft per month in the first half of the year but plans to accelerate production to meet the 38 per month rate in the second half of the year.
Commitment to Quality
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At a media event in June, Elizabeth Lund, Senior Vice President of Quality for Boeing Commercial Airplanes (BCA), detailed the measures Boeing has taken to enhance quality control since the mid-air door plug blowout incident on Alaska Airlines flight AS1282. This incident led the National Transportation Safety Board (NTSB) to revoke Boeing’s access to new information related to the Alaska Airlines case, prompting the company to tighten its quality protocols.
High Demand Despite Delays
Despite these setbacks, Boeing continues to experience strong demand for its commercial products, including the 737 MAX and 787. At the Bank of America (BofA) Global Industrials Conference in March, West noted that Boeing’s delivery slots are sold out through 2028, with quotes now being issued for deliveries in 2029 and early 2030.
In June, Boeing recorded only three orders for the 737 MAX, including Alaska Airlines replacing the 737 MAX 9 involved in the door plug incident with a 737 MAX 10, which is yet to receive certification from the Federal Aviation Administration (FAA).
Boeing’s commitment to resolving these challenges and meeting delivery schedules remains firm as the company navigates through these turbulent times, focusing on long-term improvements and customer satisfaction.
- Featured image by SounderBruce | Wikimedia
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