Boeing cuts 737 deliveries amid latest defect
Boeing lowered its annual delivery forecast for its fabled 737 aircrafts amid an ongoing supply chain defect for its iconic 737 Max.
The US planemaker now expects to deliver between 375 and 400 737 airplanes this year, down from 400 to 450 as the latest quality issue, stemming from supplier Spirit Aerosystems, continues to bite.
Improperly drilled holes in the aft pressure bulkhead of Boeing’s iconic 737 Max planes caused yet another supply chain defect at the planemaker in August. The latest snafu is estimated to have hit nearly three-quarters of its bestselling fleet.
Boeing did maintain its delivery forecast for 787 widebody planes, at between 70 to 80 for this year, with an intention to bump up monthly deliveries in 2025/26.
It also held firm on a previously set target of generating between $3bn (£2.5bn) and $5bn in free cash flow this year.
“We continue to progress in our recovery and despite near-term challenges, we remain on track to meet the financial goals we set for this year and for the long term,” Boeing’s chief executive officer, Dave Calhoun, said.
He added: “The important work we’re doing to add rigor around our quality systems and build a culture of transparently bringing forward any issue, no matter the size, can bring short-term challenges – but it is how we set ourselves on the right course for our long-term future.”
“Leading with safety, quality and transparency, we will continue to restore our operational and financial strength.”
Boeing and its long-running rival Airbus have both struggled to increase aircraft production following the Covid pandemic, with delivery delays a feature of this year at a time when demand for travel has reached record levels.
The company offloaded 105 aircraft in the third quarter, down from 105 and hit by a 20 per cent fall in 737 aircraft deliveries as a result of the defects.
Alongside falling deliveries, Boeing reported a ninth consecutive quarterly loss, with an adjusted loss of $3.26 per share. Revenues rose 13 per cent to $18.1bn, although this marked a third straight quarter of slowing gains.
Boeing shares ticked up three per cent in premarket trade but are still down for the year-to-date.