Boeing's 2024 Deliveries Dip Amid Strikes and Quality Control Issues

Boeing

A Tough Year for the Aerospace Giant

Boeing's 2024 aircraft deliveries faced a significant decline, falling by 34% to 348 units compared to the previous year, primarily due to prolonged quality control challenges and a disruptive strike. The Virginia-based manufacturer reported that deliveries of its cornerstone 737 MAX aircraft dropped by 33% to 260 jets within the same period.

Strikes and Quality Snags: The aerospace giant's production was notably impacted by a seven-week strike involving factory workers, severely affecting the output of the 737 MAX along with the 767 and 777 widebody families. Quality concerns further escalated after a midflight panel blowout in January, leading to a regulatory-imposed production cap on the 737 MAX by the Federal Aviation Administration (FAA).

Production Adjustments: In response to these challenges, Boeing strategically reduced the shipment of fuselages from its supplier, Spirit Aerosystems, to mitigate potential oversights. Despite these efforts, the company managed to ramp up production of the 737 MAX by the third quarter, following the establishment of a third assembly line at its Renton, Washington facility.

Widebody Woes: The delivery of Boeing's main widebody program, the 787 Dreamliner, also saw a downturn, decreasing by 30% to 51 jets. This reduction was due to parts shortages that hindered production, although Boeing aimed to restore its production rate to 5 aircraft per month by the year's end.

Market Comparison

In contrast, competitor Airbus also faced delivery challenges in 2024, falling slightly short of its revised goal of 770 aircraft due to supply chain complications.