Boeing Faces Delivery Slump
Boeing’s 2024 performance has been among the most challenging in the company’s history, as it delivered 180 fewer commercial aircraft compared to 2023. On January 14, 2025, Boeing confirmed that it delivered 348 passenger jets to customers over the course of the previous year. However, the final quarter was particularly difficult, with only 57 jets delivered during that period. By contrast, in 2023, the company delivered a total of 528 commercial airplanes, including 157 in the last quarter.
The downturn in deliveries follows a turbulent year that began on January 5, 2024, when an incident involving an Alaska Airlines Boeing 737-9 resulted in a door plug separating midflight. Investigations later revealed that uninstalled bolts were at the root of this critical failure, prompting a broad reassessment of Boeing’s production practices. The incident not only raised questions about the safety of the 737 program but also led to whistleblowers coming forward with alarming insights into the company’s production practices.
In response to the growing safety concerns, the Federal Aviation Administration (FAA) launched a far-reaching investigation into Boeing’s operations. The scrutiny from the FAA ultimately forced Boeing to limit its production numbers as part of a broader effort to ensure enhanced safety oversight—a process that FAA Chief Mike Whitaker declared would “enhance oversight” of the company and, in his words, is “here to stay.”
The production difficulties did not end with safety concerns. In addition to technical challenges, Boeing was also hit hard by labor issues. In September 2024, approximately 30,000 workers from the company walked out for seven weeks over disputes related to pay and employment conditions. The strike not only disrupted operations but also contributed to a significant delay in production schedules. After the strike ended, Boeing took an entire month to implement necessary safety steps before restarting production, further delaying the delivery of new aircraft.
These compounding issues—ranging from technical malfunctions and safety investigations to labor disputes—have had a dramatic impact on Boeing’s overall performance in 2024. The drastic drop in orders further compounded the delivery slump. While Boeing secured 1,456 orders in 2023, the number fell sharply to only 569 in 2024. This significant decline in new orders signals a challenging market environment for Boeing as competitors, including Airbus, continue to secure new business.
In contrast, Airbus reported delivering 766 commercial aircraft to 86 customers around the world during 2024. The contrasting figures between the two major aerospace giants underscore the difficulties Boeing has faced this past year.
Amid these challenges, Boeing made major leadership changes, replacing CEO Dave Calhoun with Kelly Ortberg in a bid to restore confidence and stabilize operations. The leadership shift, coupled with the FAA’s stringent oversight and the workforce’s renewed focus on safety and quality, indicates that Boeing is attempting to rebuild its operational integrity after one of its most problematic years.
As Boeing works to recover from these setbacks, the industry and its customers remain watchful. Restoring production reliability and order intake will be critical in rebuilding its market share and reputation. For now, Boeing’s reduced deliveries and falling orders serve as a stark reminder of the company’s tumultuous year, with recovery dependent on successfully addressing both technical and labor challenges while regaining the trust of regulators and customers alike.
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