Boeing Faces Aircraft Delivery Decline in July Due to Supply Chain and 737 Production Challenges

Boeing reported a decline in its aircraft deliveries in July, as it faced challenges in its supply chain and production of its 737 MAX jets. The U.S. planemaker delivered 43 planes in July, down from 60 in June, and lagging behind its European rival Airbus, which delivered 65 jets last month.

The main reason for the drop in deliveries was the lower output of the 737 MAX, Boeing’s best-selling narrowbody jet that was grounded for nearly two years after two fatal crashes. Boeing delivered 32 MAXs in July, the lowest level since April, when it discovered a defect in the installation of brackets on the vertical tail of about 75% of the 737s in its inventory.

Boeing CEO Dave Calhoun said in July that the company was working to fix the bracket issue, as well as dealing with a work stoppage at supplier Spirit AeroSystems and a bridge collapse that affected the railway delivery of the 737 fuselage. He said these factors could cost the company a few deliveries in the third quarter.

Boeing announced last month that it had increased its 737 production rate from 31 to 38 jets per month, but Chief Financial Officer Brian West said it would take time to achieve consistent delivery at that level.

Despite the challenges, Boeing booked 52 gross orders in July, including a sale of 39 Dreamliners to Saudia, with no cancellations. Boeing’s gross orders since January rose to 579 in July, or 467 net orders after cancellations and conversions. Its commercial backlog increased from 4,879 to 4,928 planes. Airbus booked 1,140 gross orders, or 1,101 net orders, through July.

Sources: AirGuide Business airguide.info, msn.com, money.usnews.com, finance.yahoo.com, reuters.com