Boeing faced production difficulties and labor strikes in 2024, delivering significantly fewer airplanes than Airbus. This resulted in a wider delivery gap, impacting the aerospace giant's financial performance.
Boeing's delivery woes continued in 2024, as production challenges and labor disruptions hampered its ability to meet customer demand. The aerospace giant delivered only 348 airplanes, a significant drop from the previous year's total. This shortfall widened the delivery gap with its primary rival, Airbus, which delivered a record-breaking 766 jetliners.
Boeing faced multiple hurdles throughout the year, including a midair door plug blowout in January 2024 and a prolonged machinist strike in the fall. The production setbacks led to a halt in Boeing's deliveries of its best-selling 737 Max planes for nearly eight weeks. While Boeing managed to restart production in December, delivering 30 airplanes, it still lagged behind Airbus's impressive output. Deliveries are crucial for aircraft manufacturers as they represent the point at which customers pay the majority of an airplane's price. The ongoing shortage of aircraft from suppliers has further exacerbated the situation, driving up lease rates and pushing them towards record highs in 2025, according to aviation data firm IBA.Despite the delivery challenges, Boeing secured 142 gross orders for new planes in December, including a substantial order for 100 737 Maxes from Turkey's Pegasus Airlines and 30 787s from flydubai. The company also recorded more than 130 orders for India's now-defunct Jet Airways. Boeing's total gross orders for 2024 reached 569, while net orders stood at 377 airplanes, reflecting adjustments made for cancellations and other factors. Airbus, which reported its December and full-year figures last week, recorded 878 gross orders and 826 net orders for 2024. Boeing is scheduled to release its fourth-quarter and full-year results on January 28, 2025. Investors will be closely watching the company's performance and its plans to address production bottlenecks and restore profitability
AIRCRAFT DELIVERY BOEING AIRBUS PRODUCTION CHALLENGES LABOR DISRUPTIONS
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