Boeing Maintains Steady Jet Deliveries in July Despite Supply Chain Challenges

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Boeing reported on Tuesday that it delivered 43 commercial aircraft in July 2024, matching the same number it delivered in July 2023. This consistency comes despite ongoing supply chain challenges as the U.S. aerospace giant strives to increase production under the leadership of its new CEO, Kelly Ortberg.

The company has committed to ramping up its aircraft output by the end of the year, following months of dealing with supply chain disruptions and a slower-than-usual assembly line. This slowdown was exacerbated by a January 5 incident involving an in-flight blowout of a door plug on a 737 MAX 9 jet, which prompted heightened regulatory scrutiny.

In July, Boeing delivered 31 of its popular 737 MAX jets to customers, including a few to Chinese carriers. This marks a significant milestone, as the company resumed deliveries to China after a prolonged delay due to regulatory concerns. The return to the Chinese market is a positive development for Boeing, given the importance of the region to its overall business.

However, the month was not without challenges for Boeing. The company also finalized a guilty plea related to a criminal fraud conspiracy charge and agreed to pay at least $243.6 million. This settlement stemmed from Boeing’s breach of a 2021 agreement with the U.S. Department of Justice, further highlighting the company’s ongoing legal and regulatory hurdles.

On the positive side, Boeing reported 72 gross orders in July 2024, a significant increase from the 52 orders it received in July 2023. This surge in orders included 57 new orders for the 737 MAX, many of which were announced during the Farnborough Air Show. After adjustments for its order backlog, Boeing’s net adjusted orders for July stood at 72.

So far in 2024, Boeing has reported a total of 228 gross orders through July 31. After accounting for cancellations and conversions, the net total is 186 orders. Further accounting adjustments bring the company’s adjusted net orders for the year to 98 aircraft. These figures reflect Boeing’s efforts to stabilize its order book amid ongoing production challenges.

In terms of deliveries, Boeing has handed over 218 aircraft year-to-date through July 31, including 166 of its 737 MAX jets. While these numbers are promising, Boeing remains in stiff competition with its European rival, Airbus (AIR.PA), which delivered 77 planes in July 2024 alone.

As Boeing continues to navigate the complex landscape of supply chain issues, regulatory scrutiny, and competitive pressures, the company’s ability to meet its production and delivery goals will be critical to its ongoing recovery and growth.