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boeing has been delayed before Distribution Its 777X jets have been pushed back again, this time to 2027.
Business Nearly $5 billion was charged due to delay In another series of failures for aerospace huge.
The 777X was central to Boeing’s long-term widebody strategy, previously dominated by its iconic 747 and 777. jet,
But repeated certification and production delays have pushed back deliveries by years, racking up charges of more than $15 billion and straining its finances while rival Airbus’s competing A350 faces a chance of opening up internationally. Travel Continues to grow.
Last month, CEO Kelly Ortberg said the company was behind schedule in certifying the jet, saying “a lot of work” needed to be done, but at the time did not mention further delays to the first delivery, which was scheduled for 2026.
However, no new technical problems have been identified, he said.
Including the charges disclosed Wednesday, Boeing has taken charges of nearly $15 billion related to the 777X program. The latest charges also include penalties imposed on customers for late delivery.
Planemaker shares were down 1% in premarket trading. Wall Street analysts had anticipated a large fee for the 777X program.
Richard Aboulafia, managing director of American boutique aerospace management consulting firm Aerodynamic Advisory, said the fee is more than the $2 billion to $4 billion he expected. Although he does not expect the allegation to harm debt-laden Boeing financially, “it raises questions about any surprises that may come.”
However, the latest delays come at a time when demand for widebody aircraft is increasing for international travel, which was not the case when the 777X was first grounded.
“Now it may get a challenge,” Abulafia said. “People start losing patience and start demanding compensation.”
According to Boeing, this fee covers long production costs and fines owed to customers.
Quality issues, delays over the years
After battling quality issues and production delays on its flagship 737 Max for years, Boeing is cautiously increasing monthly production through 2025.
Earlier this month, the company received long-awaited approval from the US Federal Aviation Administration to increase 737 Max production to 42 jets per month, reducing the limit of 38 in effect from January 2024.
This limit was imposed in January 2024 following the mid-air panel explosion of a nearly new aircraft.
Boeing delivered 55 jets in September, its strongest performance for that month since 2018. That was a significant jump from the 33 deliveries recorded a year earlier, when a strike by 33,000 factory workers in the Pacific Northwest disrupted production.
Deliveries are closely monitored by Wall Street, as aircraft manufacturers typically receive the bulk of their payments upon handing over jets to customers, making deliveries a leading indicator of revenue and cash flow.
Boeing reported free cash flow of $238 million, turning positive for the first time since 2023.
The aircraft maker reported an adjusted loss of $7.47 per share for the quarter through September, while analysts had on average expected a loss of $4.59, according to data compiled by LSEG.
Its revenue for the quarter rose 30% to $23.27 billion, beating Wall Street’s expectations of $21.97 billion.