Boeing delivered 22 jets in February 2022 down from 32 in January
Boeing has delivered 54 jets so far in 2022 and the commercial aerospace giant will need 53 deliveries in March 2022 alone to meet Wall Street’s expectation for the first quarter. Boeing earlier reported total orders for 37 commercial jets in February, including five 777 freighters, and sold 114 jets or 107 after cancellations for the first two months of 2022.
In February Boeing delivered 22 jets, down from 32 in January. January’s number included 29 737 Max jets, two 767 jets, and one 777 freighter. The breakdown:
- 20 737 Max jets
- one 777 freighter
- one 747 freighter
Falling deliveries doesn’t appear to be good, but Boeing still isn’t delivering its 787 Dreamliner as it works through quality problems in the manufacturing process. Last fall, for example, the company disclosed that some titanium parts were defective.
For perspective on what a challenge that could very well be, Boeing delivered 29 jets last March. Still, analysts are taking the long view on production, projecting the company will deliver 606 airplanes for all of 2022—up from 340 last year.
Over the course of the year, though, Wall Street expects deliveries to climb, hitting the 606 number. 737 Max deliveries are expected to increase to 484 from 263 in 2021. The first-quarter projection is 107, according to analyst estimates compiled by Bloomberg.
Shares of Boeing were 1.9% higher in midday trading Tuesday after the airplane maker released its February deliveries number. The S&P 500 and Dow Jones Industrial Average were down 0.7% and 0.4%, respectively.
The stock might not be reacting more to the light deliver numbers because bad news is already reflected in shares. Shares are down about 14% year to date—and down about 18% from highs just before Russia invaded Ukraine.
The Russia-Ukraine war affects Boeing in several ways. First, the aircraft manufacturer sources titanium raw material from Russia. Boeing halted its purchases of Russian titanium Monday.
Second, Boeing jets are flown by Russian airlines. Sanctions have created problems of aircraft lessors who need to repossess the plants. Lessors are key customers for aircraft makers.
Finally, the war has pushed up oil prices, which raises the cost of fuel for airlines. Higher fuel prices can push airlines to buy new, more fuel efficient jets, but rising airline ticket prices, caused by inflating costs, can hurt demand for air travel.
With all that happening, one month’s worth of deliveries is getting a pass from investors. The March number might be more telling. barrons.com