Subscribe to newsletter

Home Money & Business Business Boeing’s 2024 aircraft orders and deliveries showcase the challenges faced by the company.

Boeing’s 2024 aircraft orders and deliveries showcase the challenges faced by the company.

0
Boeing’s 2024 aircraft orders and deliveries showcase the challenges faced by the company.

Boeing’s performance in delivering commercial aircraft in 2024 lagged significantly behind its European competitor, Airbus, according to data released recently. The American aerospace company reported delivering a total of 348 jetliners over the year, marking a staggering decline of over 30% compared to the 528 aircraft delivered in 2023. This represents less than half of the deliveries made by Airbus during the same period.

Deliveries are crucial for aircraft manufacturers as they provide a significant influx of cash, with customers typically paying a substantial part of the total cost when their orders are completed. A large portion of Boeing’s 2024 deliveries consisted of 737 Max jets, highlighting the model’s importance in shaping both the company’s successes and tribulations. Boeing has struggled financially since 2019, following the tragic crashes of two Max jets that resulted in the loss of 346 lives.

Initially, Boeing aimed to increase its production rate in 2024. However, complications arose when a door plug detached from a 737 Max shortly after takeoff in January, prompting increased scrutiny from regulatory authorities. The Federal Aviation Administration (FAA) subsequently imposed a production limit on the Max jets until Boeing could demonstrate that it had addressed the underlying manufacturing quality and safety issues.

This incident not only hurt Boeing’s finances but also negatively impacted its sales of new aircraft. The company faced a prolonged period without receiving any new orders for the 737 Max, ending the year significantly trailing Airbus in total net orders, which accounts for order cancellations as well. Airbus registered 826 net orders, while Boeing managed only 317.

Additionally, Boeing’s operations were further disrupted by a strike involving machinists responsible for assembling the 737 Max, 777, and 767 cargo planes. This labor dispute halted production at Boeing’s factories located in Renton and Everett, Washington, severely limiting the company’s ability to fulfill deliveries. The strike concluded after over seven weeks when Boeing conceded to demands for wage increases and better benefits.

With financial strain escalating, Boeing has been seeking to increase its cash flow through new aircraft deliveries, which are essential for the company to recover from its ongoing financial difficulties stemming from the unfortunate incidents involving the Max jets.