Strike impact looms large over future Boeing deliveries
October 9, 2024
Boeing delivered a total of 116 commercial aircraft during the third quarter of 2024, contributing to a year-to-date total of 291 aircraft. However, amidst ongoing FAA-imposed production caps and quality control challenges, the US manufacturer faces further uncertainty over its output as ongoing machinist strikes mark the latest of this year’s production setbacks.
92 units delivered during the Q3 period were 737 MAX models, followed by the 787 Dreamliner at 14 units. Six 767 and four 777 aircraft were also delivered. However, with the ongoing machinists’ strike (halting production of the MAX, 767 and 777 models) approaching a month in duration, concerns remain as to what future output may look like.
Although Q3 figures indicate a rise in output quarter-on-quarter for the MAX, in September alone, Boeing handed over just 27 MAX units (down from 32 in August and 31 in July). These included five units to United Airlines (whose total unfulfilled orders now stand at 326).
In December 2023, United Airlines expected to receive a total of 157 MAX aircraft (including 80 MAX 10s). In 2024 so far, it has received just 28 MAX aircraft – although as of March 2024, the carrier allegedly removed the as-yet-uncertified MAX 10 from its fleet plan until after 2025. Even after revising its MAX 8/9 delivery expectations to a combined 56 for 2024 in March, there are still 28 units to go – something almost impossible for Boeing to fulfil.
Similarly, Ryanair – which received three MAX units in September, down from August’s six – has received just 34 units so far this year. Speaking to Reuters in August, Ryanair CEO Michael O’Leary expressed his dissatisfaction at ongoing delivery delays. “We’re working closely with Stephanie Pope and the new team in Boeing, but they continue to disappoint us,” explained O’Leary.
Strike action is the latest setback to impact a production line already complicated by issues of ‘re-work’ and quality control challenges, with the FAA imposing a production cap of 38 units a month in January amidst increased regulatory oversight. In a further blow to Boeing, the third round of mediated negotiations with labour union IAM has reached an apparent impasse, with Boeing CEO of commercial airplanes Stephane Pope criticising the union’s “non-negotiable demands far in excess of what can be accepted if [Boeing is] to remain competitive as a business”.
