Boeing Delivery Decline Deepens Amid Supply Challenges
Boeing’s 2024 aircraft deliveries tumbled to 348 jetliners, roughly one-third below the previous year’s figures, as the aerospace giant struggled to ramp up production amid significant operational hurdles. The delivery gap between Boeing and its chief rival, Airbus, widened considerably, with Airbus handing over 766 planes in 2024—the highest total since 2019—demonstrating an increasingly stark contrast between the two manufacturers.
The decline in Boeing’s deliveries has been largely attributed to two major setbacks. Earlier in the year, a midair door panel blowout disrupted production schedules, and this event, combined with a nearly eight-week machinist strike that brought production to a temporary halt in the fall, significantly hampered the company’s ability to meet its ambitious delivery targets. These operational difficulties have further strained Boeing’s supply chain, which, along with a shortage of aircraft from key suppliers, has driven up lease rates. According to a recent report from aviation data firm IBA, rental rates are on track to hit record levels this year.
In December 2024, Boeing made headlines by delivering 30 airplanes, marking the restart of production for its bestselling 737 Max series following the resolution of the machinist strike. Deliveries, however, remain critical for manufacturers because they represent the point where customers pay the bulk of an airplane’s price and signal a company’s ability to fulfill large backlogs. For Boeing, these numbers have not only impacted revenue recognition but have also given investors pause as they scrutinize the company’s profitability amid ongoing production challenges.
Despite these setbacks, Boeing managed to log 142 gross orders in December alone, including significant orders such as 100 737 Maxes for Turkey’s Pegasus Airlines and 30 787s for flydubai—an order first announced at the Dubai Air Show in late 2023. Additionally, Boeing removed more than 130 orders from its books for India’s now-defunct carrier Jet Airways, further affecting its net order count. For the full year, Boeing reported 569 gross orders and 377 net orders (317 after adjustments), numbers that highlight the company’s continuing efforts to secure new business despite current production delays.
In comparison, Airbus reported an impressive performance with 878 gross orders and 826 net orders for 2024. With its deliveries robustly recovering, Airbus is benefiting from a more streamlined production process and fewer disruptions compared to Boeing. Both companies, however, continue to face common supply chain strains that have slowed production and fulfilled orders across the board.
Boeing is set to report its fourth-quarter and full-year financial results before the market opens on January 28, where CEO Kelly Ortberg and other top executives are expected to address investor questions regarding their plans to restore production rates and profitability. The upcoming earnings report will be closely watched by industry analysts and investors, as it will shed light on Boeing’s strategy to overcome these operational challenges and regain its competitive edge in the global aerospace market.
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Sources: AirGuide Business airguide.info, bing.com, cnbc.com