American Airlines can’t get all the 787 Dreamliner jets from Boeing

American Airlines can’t get all the 787 Dreamliner jets from Boeing that it wants, and that is causing scheduling issues for the airline.

On Friday, The Wall Street Journal reported that American Airlines was suspending its Philadelphia to Madrid route for a few weeks in May and June, citing delivery delays for the jets. Both companies confirmed the situation.

Boeing had most recently paused deliveries of 787 jets in February, not because of parts shortages, but because of paperwork. “An analysis error by our supplier related to the 787 forward pressure bulkhead” was responsible for the pause, the company said at the time.

“We continue to work with our customers, including American Airlines, on delivery timing and deeply regret the impact to their operations,” a Boeing spokesman said Friday in an emailed statement.

An American spokeswoman said the company will be offering alternate travel arrangements to affected customers. American remains “committed to our customers and team members and mitigating the impact of the 787 delivery delays,” she said in the emailed statement.

Investors have heard a lot about production problems and delivery delays from Boeing in recent years. The American route pause is a consequence of the backlog created by all of Boeing’s production issues that have now stretched out over years.

All investors can do is hope the latest delay story is the beginning of the end—and they finally have some reason for optimism that these delivery issues could be winding down. Boeing CEO Dave Calhoun said recently that delivery problems were fading for the company as parts supply improves.

There isn’t a firm timetable for resuming 787 deliveries, following the February pause. That will be up to the Federal Aviation Administration. Based on how the stock is performing, investors are paying attention to the delay and haven’t given Calhoun’s comments full credence yet.

Boeing stock fell 1% in late trading Friday, while American Airlines stock was flat. The S&P 500 and Dow Jones Industrial Average were up 0.2% and 0.1%, respectively. Boeing stock has fallen about $12, or 6%, since the 787 delivery pause. The S&P 500 is down about 1% over the same span.

In 2022, Boeing delivered 480 jets, up from 340 delivered in 2021. Boeing delivered 806 jets in 2018, the year before any impact from the 737 MAX’s grounding or the Covid-19 pandemic. Wall Street expects Boeing to deliver roughly 580 planes in 2023.

Until Boeing’s performance and production rates normalize, investors might react nervously to reports of delays that could make the company’s customers unhappy. dowjones.com