Boeing Reports October Jet Deliveries

SEATTLE (Reuters) – Boeing (NYSE:BA) announced on Tuesday that it delivered 14 commercial jets in October, significantly down from the 34 jets delivered in the same month of 2023. This decline resulted from a weeks-long strike that halted most of its aircraft production.

The U.S. planemaker has mandated that all West Coast factory workers return to work as of Tuesday following the strike's conclusion on November 5. However, Boeing stated in a release that it will take several weeks before airplane production is fully operational again.

Boeing faces increased oversight from the U.S. Federal Aviation Administration (FAA) as it resumes production of its main-selling 737 MAX jets, along with the 767, 777, and 777X models, which were halted during the strike that began on September 12.

The company is aiming to ramp up 737 production to achieve a monthly rate of 38 jets to generate necessary revenue, particularly after the strike impacted deliveries in September and October. Boeing's 787 production in South Carolina remained unaffected by the strike.

In October 2023, the company managed 34 jet deliveries, concurrently addressing a manufacturing issue with the 737 MAX.

Since January 5, Boeing has been operating a slower 737 MAX assembly line due to heightened regulatory scrutiny following an in-flight incident involving a door plug on a nearly new model.

Boeing stated that it will persist in monitoring production to ensure safety and quality, as well as maintaining current employee training certifications.

October Delivery Breakdown: The deliveries included nine 737 MAX jets, four 787s, and one 767 freighter for FedEx (NYSE:FDX). Between the start of the strike and the end of October, the company delivered a total of 24 aircraft.

In terms of orders, Boeing secured 63 gross orders in October with no cancellations, which comprised 46 737s, four 777 freighters, and ten 787s.

From the year's start, Boeing registered 378 gross orders and 335 net orders after accounting for cancellations and conversions, ultimately booking 141 net orders after standard accounting adjustments.

Notably, 220 gross orders, or nearly 60% of its orders, occurred between July and October.

In contrast, Boeing's European competitor Airbus (AIR.PA) announced on November 7 that it delivered 62 jets in October, as it pursues an annual target of approximately 770 planes, down from an initial goal of 800 set in July due to supply chain challenges.