Aerospace Industry Faces Turbulence: Boeing’s Delivery Numbers Plummet
The aerospace giant Boeing has reported a significant decline in airplane deliveries for 2024, handing over only 348 planes, a stark contrast to the 766 jetliners delivered by its rival Airbus. This marks a substantial widening of the delivery gap between the two companies.
Supply Chain Strains and Production Halt
The decline in deliveries can be attributed to the midair door panel blowout crisis that occurred a year ago, followed by a machinist strike in the fall that brought production to a grinding halt. Although production has resumed, the company is still grappling with supply chain strains that have slowed down production and fulfillment of its robust backlogs.
December Deliveries and Orders
In December, Boeing managed to deliver 30 airplanes, including the restart of its bestselling 737 Max planes. The company also logged 142 gross orders for new planes, including 100 737 Maxes for Turkey’s Pegasus Airlines and 30 787s for flydubai. However, Boeing also removed over 130 orders from its books for India’s now-defunct carrier Jet Airways.
Year-End Tally
Boeing’s gross orders for the year stood at 569, while net orders were 377 airplanes, with 317 including accounting adjustments. In comparison, Airbus reported 878 gross orders and 826 net orders for the year.
Challenges Ahead
Boeing is scheduled to report its fourth-quarter and full-year results on January 28, when CEO Kelly Ortberg and other leaders will face investor questions about their plans to ramp up production and restore the company’s profitability. The aerospace giant will need to address the ongoing supply chain issues and production challenges to bridge the delivery gap with Airbus.
Industry Trends
The shortage of aircraft from suppliers has driven up lease rates, with rentals expected to hit records this year, according to aviation data firm IBA. This trend is likely to continue, making it essential for manufacturers to find ways to overcome the production hurdles and meet the growing demand for air travel.
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