Boeing's October Deliveries Halved Due to Strike

Boeing Co. reported a significant decline in commercial jet deliveries in October. The company delivered only 14 aircraft to customers, a sharp decrease compared to the 34 jets delivered in October 2023. This drop is linked to a strike that began on September 12 and halted much of the company's aircraft production.

West Coast factory workers for the aerospace manufacturer were expected to return to work on Tuesday following a strike that ended on November 5. Boeing anticipates that full resumption of aircraft production will take a few weeks. The company is restarting production of its best-selling 737 MAX jets, as well as the 767, 777, and 777X models, while being subject to increased scrutiny from the Federal Aviation Administration (FAA).

To compensate for lost revenue due to production disruptions in September and October, Boeing is attempting to ramp up the production rate of the 737 to 38 aircraft per month. The company’s 787 production in South Carolina was not affected by the strike.

In October 2023, Boeing faced challenges due to a production issue with the 737 MAX, contributing to the low delivery numbers during that period. Additionally, the 737 MAX assembly line has been operating at a slower pace since January 5 due to increased regulatory oversight following an incident related to a door jam on nearly a new model in flight.

Despite these setbacks, Boeing remains committed to maintaining safety and quality in production and ensuring that employee training certifications are up to date. The company managed to deliver a total of 24 aircraft, including nine 737 MAX jets, four 787s, and one 767 cargo plane for FedEx, from the beginning of the strike through October.

Boeing also reported receiving 63 gross orders in October without cancellations. These orders include 46 737s, four 777 cargo planes, and ten 787s. Since the beginning of the year, the company has recorded 378 gross orders and 335 net orders after adjustments for cancellations, conversions, and accounting standards, resulting in 141 net orders.

Notably, about 60% of Boeing’s orders throughout the year, or 220 gross orders, were placed between July and October.

In comparison, Boeing's European rival Airbus delivered 62 jets in October and is working to achieve a revised annual target of approximately 770 aircraft, down from 800, due to supply chain issues.