Boeing's 737 Deliveries Expected to Match Q1 2023 Levels, 787 Deliveries Lag – BofA

Boeing's 737

Bank of America analysts predict that Boeing's (NYSE

) deliveries of 737 aircraft will be close to Q1 2023 levels, while deliveries of the 787 model will fall behind due to newly identified issues.

As of mid-June, Boeing had delivered 12 units of the 737, exceeding the nine units delivered during the same period last month, according to Aero Analytics Partners/AIR (AAP/AIR). Production has also ramped up to 13 units as of June 13, with flight activity showing a 5% increase compared to the same period last year.

AAP/AIR forecasts that Boeing's 737 deliveries in June will surpass the 19 units delivered in May by 25 to 28 units. Should this prediction hold, the second-quarter delivery total would be nearly equal to the 66 units delivered in Q1 2023, specifically for the 737 MAX.

However, despite the typical end-of-quarter production and delivery boost, AAP/AIR anticipates that production will fall below 300 units for fiscal year 2024, with deliveries ranging between 300 and 330 units.

In the meantime, Boeing has reported a new issue affecting its 787 aircraft, revealing that more than 900 fasteners per aircraft had incorrect torque. AAP/AIR data suggests that reworking each aircraft will take approximately 5 to 9 days, with four aircraft shipped before June 2020 currently undergoing repairs.

It remains uncertain whether this problem is limited to aircraft built before 2020 or if the fasteners were installed by Boeing or its supplier Leonardo.

Due to this development, AAP/AIR expects delays in aircraft deliveries in the upcoming months.

Bank of America has maintained a neutral stance on Boeing's stock, with a price target set at $200.