Boeing to enter 2025 “in much stronger position” regarding deliveries and backlog
Despite Boeing’s 175 commercial aircraft deliveries in the first half of 2024 being down 34% from H1 2023’s 266, “entering 2025 [Boeing] will be in a much stronger position because of the work we’re doing now,” outgoing CEO Dave Calhoun confirmed during the manufacturer’s earnings call.
During the second quarter of 2024, Boeing’s delivery of 92 commercial aircraft continued to be impacted by measures to address quality control and ongoing supply chain constraints. This was reflected in the business segment’s half-year earnings of $10,656 million; down almost a third of the first half of 2023 ($15,544 million).
However, ongoing measures are being taken to address the quarter’s backlog of over 5,400 units (valued at $437 billion). Production of the 737 MAX – which delivered 70 units in the quarter, including a step-up to 35 in June – “gradually increased during the quarter and still expect to be higher in the second half, as we move to 38 per month by year-end,” stated Calhoun.
In particular, the reactivated third line in the Renton facility will also help Boeing “with unforeseen issues, because it gives us flexibility across three lines as opposed to having to close two if we end up a non-conformance somewhere. So we are simply trying to over-capacitize to accommodate things that appear and steady our production,” he added.
Although deliveries of the 787 (with nine units shipped during the second quarter of 2024) were “impacted by lower production, seat delays and other delivery timing items,” Calhoun explained that production is expected to stabilise at five aircraft a month by year-end.
He continued that the company has made “Good progress, despite having some real supply chain constraints… those constraints aren’t going to go away immediately, but they’re going to get better”. Boeing finished the quarter with around 35 aircraft in its inventory (built prior to 2023) that required rework, which Boeing expect to complete and shut down its ‘shadow factory’ by year-end.
