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Wednesday, Jan 15, 2025
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Boeing's Jet Deliveries Fall to Lowest Point Since Pandemic Due to Production and Order Difficulties
In 2024, Boeing experienced a significant decline in jet deliveries and orders because of supply chain disruptions, a labor strike, and production quality problems, making it its weakest year since the COVID-19 pandemic.
Boeing's commercial jet deliveries in 2024 reached their lowest point since the COVID-19 pandemic, with the U.S. aerospace giant delivering just 348 planes compared to 528 the year before.
The company also experienced a significant decrease in new orders, with 569 gross orders and 377 net orders after adjustments for cancellations and conversions, a sharp drop from 1,456 gross orders and 1,314 net orders in 2023.
Several factors contributed to this decline, including a seven-week labor strike last fall that disrupted production lines, ongoing supply chain delays, production quality issues, and heightened regulatory scrutiny.
The labor strike, concluding on November 5, led Boeing to adopt a cautious approach to resuming production.
The company restarted its primary 737 assembly lines in December, delivering 30 jets that month—17 of which were 737 MAX and nine were 787 Dreamliners.
This represented a modest improvement from 13 deliveries in November and 14 in October.
Throughout the year, Boeing delivered 260 737 MAX jets, 51 787s, 18 767s, and 14 777s.
Despite these challenges, Boeing secured substantial orders in December, including 30 787s for flydubai and 100 737 MAX jets for Turkey's Pegasus Airlines, which traditionally favors Airbus.
These orders were part of Boeing’s 142 gross orders for the month.
However, cancellations also affected the company's performance, such as the removal of 135 orders from India-based Jet Airways after the airline was ordered to liquidate by India's highest court.
At year-end, Boeing reported a total of 6,245 unfilled orders, with 5,595 included in its official backlog adjusted for accounting standards.
The company continues to trail its European competitor Airbus, which delivered 766 jets in 2024 and secured 826 net orders after cancellations and conversions, marking the sixth consecutive year Airbus has surpassed Boeing in both deliveries and orders.
New Boeing CEO Kelly Ortberg has indicated a cautious outlook, telling investors in October that the company anticipates ongoing cash flow challenges.
Boeing’s results highlight the broader challenges facing the aerospace industry, as it grapples with lingering post-pandemic disruptions, labor unrest, and competitive pressures.
The company also experienced a significant decrease in new orders, with 569 gross orders and 377 net orders after adjustments for cancellations and conversions, a sharp drop from 1,456 gross orders and 1,314 net orders in 2023.
Several factors contributed to this decline, including a seven-week labor strike last fall that disrupted production lines, ongoing supply chain delays, production quality issues, and heightened regulatory scrutiny.
The labor strike, concluding on November 5, led Boeing to adopt a cautious approach to resuming production.
The company restarted its primary 737 assembly lines in December, delivering 30 jets that month—17 of which were 737 MAX and nine were 787 Dreamliners.
This represented a modest improvement from 13 deliveries in November and 14 in October.
Throughout the year, Boeing delivered 260 737 MAX jets, 51 787s, 18 767s, and 14 777s.
Despite these challenges, Boeing secured substantial orders in December, including 30 787s for flydubai and 100 737 MAX jets for Turkey's Pegasus Airlines, which traditionally favors Airbus.
These orders were part of Boeing’s 142 gross orders for the month.
However, cancellations also affected the company's performance, such as the removal of 135 orders from India-based Jet Airways after the airline was ordered to liquidate by India's highest court.
At year-end, Boeing reported a total of 6,245 unfilled orders, with 5,595 included in its official backlog adjusted for accounting standards.
The company continues to trail its European competitor Airbus, which delivered 766 jets in 2024 and secured 826 net orders after cancellations and conversions, marking the sixth consecutive year Airbus has surpassed Boeing in both deliveries and orders.
New Boeing CEO Kelly Ortberg has indicated a cautious outlook, telling investors in October that the company anticipates ongoing cash flow challenges.
Boeing’s results highlight the broader challenges facing the aerospace industry, as it grapples with lingering post-pandemic disruptions, labor unrest, and competitive pressures.
