Boeing Co. reported a 29% drop in airplane deliveries in January compared with the same period last year, with only 27 airplanes reaching customers. The drop comes as the aerospace giant faces increased scrutiny from regulators, lawmakers and customers following a recent crash involving a Boeing 737 MAX 9 aircraft.
Deliveries of the 737 MAX, the company’s main source of profit, fell to 25 aircraft, a significant reduction compared to the more than 40 MAXs delivered in the previous two months. On the other hand, in January 2023, Boeing had delivered a total of 38 aircraft, 35 of which were 737 MAX variants.
Boeing’s order book also reflected the challenges, with the company receiving just three gross orders, the lowest since 2019, following a successful December. The manufacturer announced cancellations for two 737 MAX aircraft by unnamed customers and an order cancellation for a 787 Dreamliner by Spanish airline Air Europa.
Boeing’s European rival Airbus delivered 30 jets in January and received 31 new orders.
Boeing’s decline in deliveries and orders is partly attributed to the effects of the January 5 crash of a new Alaska Airlines MAX 9, in which a door plug broke off in flight. In response, the US Federal Aviation Administration (FAA) temporarily grounded the MAX 9 last month and imposed production limits on the MAX series while it audits Boeing’s manufacturing processes.
Adding to Boeing’s difficulties, a supplier, Spirit Aerosystems, recently identified a manufacturing issue involving incorrectly drilled holes in the window frames of some 737s. This defect could delay the delivery of about 50 aircraft.
In addition to the 737 MAX, Boeing managed to deliver one 787 Dreamliner and one 767 wide-body aircraft in January, the latter of which will be converted into a KC-46 tanker for the US Air Force.
As of January 31, Boeing’s backlog fell to 5,599 airplanes from 5,626, with a total of 6,189 unfilled orders, excluding adjustments.
Boeing CEO Dave Calhoun announced during the earnings call on January 31 that the company will not set a delivery target for 2024, focusing on its current issues. Calhoun emphasized the importance of meeting both company and regulatory standards and customer expectations.
Boeing executives have indicated that they plan to deliver most of the stored 737s and 787s affected by the 2018-2019 MAX crisis or requiring rework due to production defects by the end of 2024.
