Boeing’s 3Q Deliveries Surge Despite Persistent Operational Hurdles

Boeing’s 3Q

Aviation giant Boeing saw a notable 10% increase in third-quarter deliveries, driven largely by a sharp rise in 737 model shipments despite ongoing production and quality control challenges. This uptick to 116 aircraft, compared to 105 from the same quarter in 2023, reflects the company’s efforts to stabilize amid setbacks, as reported in Boeing's recent statistics.

Quality issues in 2023 related to Spirit AeroSystems, Boeing’s primary supplier, initially hampered output. However, Boeing moved in July to reacquire Spirit for $4.7 billion, strategically planning to streamline operations by divesting Spirit’s Airbus contracts. This acquisition, slated for mid-2025 completion, is part of Boeing’s long-term strategy to restore production reliability and meet heightened demand.

A Surge in 737 Deliveries

Deliveries of Boeing's flagship 737 climbed by an impressive 31% from the prior year, totaling 92 shipments for the quarter. Yet, the production rate still trails the company’s July objective of reaching a monthly rate of 38. Following the third assembly line’s reopening at the Renton facility, Boeing’s production holds steady at around 31 aircraft per month, which, while significant, falls short of anticipated targets.

Conversely, deliveries of the 787 model declined to 14, down from 19 a year earlier, albeit showing improvement over the second quarter’s nine units. However, labor tensions could further strain Boeing’s fourth-quarter output; the International Association of Machinists and Aerospace Workers (IAMAW) launched a strike in mid-September, likely to curb productivity as negotiations continue.

As of the end of Q3 2024, Boeing’s year-to-date deliveries total 291, down 22% compared to last year’s 371. The company continues to address a series of quality and safety concerns from early 2024, which has significantly impacted its annual output. Amid these headwinds, Boeing’s latest quarterly results indicate resilience and gradual recovery in meeting the market’s aerospace demands.