Boeing delivered less than half of the number commercial aircraft to customers as its European rival in the year 2024, as the American aero giant’s output was affected by increased government scrutiny and a strike at the factory workers’ union.
Boeing reported that it delivered 348 jetliners in the past year. This was more than one-third less than the 528 jetliners the company delivered to airlines and leasing outfits by 2023, and less than half of the number of aircraft that Airbus produced last year.
Deliveries are a major source of cash for aircraft manufacturers, since buyers pay a significant portion of their purchase price once their orders are fulfilled.
Boeing supplied more than three quarters of its planes as 737 Max jets. This is a stark reminder how important the company’s best-selling airline models have been to its fortunes and challenges. Boeing has lost money every year since 2019 due to the crashes of 2 Max jets.
The company anticipated that production would increase in 2024. In early January, a panel known as a door plug blew away from a 737 Max just after takeoff in Portland, Oregon. After the incident on an Alaska Airlines flight the Federal Aviation Administration stopped production of Max jets. Boeing had to prove that it had fixed manufacturing quality and safety problems.
The company’s finances and its reputation were affected, as was the sale of new aircraft. Boeing did not receive any 737 Max orders until at least two months after the cancellations. Boeing ended the year behind Airbus for total net orders of commercial planes. Airbus had 826 orders net, while Boeing only had 317.
Boeing’s delivery capacity was hampered by a strike by machinists at Renton and Everett factories, Washington. They halted production and slowed down the assembly of the 737 Max and other aircraft, including the 777 jet, 767 cargo plane, and the 777 jet. After more than seven weeks, the walkout was ended when Boeing agreed to pay increases and improve benefits.
Boeing has been losing cash since 2019, when two Max jets crashed and killed 346 people. It needs cash from the sale of new planes to dig out of a financial hole.
