Boeing's Delivery Decline: A Blip or a Long-Term Concern?

Boeing's (NYSE: BA) stock took a hit in late 2024 as the company reported a significant decline in full-year aircraft deliveries. The drop, which reached its lowest level since the pandemic in 2020 and 2021, has raised concerns about the company's financial health and market position. This article will delve into the factors contributing to Boeing's delivery decline, compare its performance to competitors like Airbus, and explore the potential long-term implications for the company's financial health and market position.



Factors Contributing to Boeing's Delivery Decline

Boeing's decline in full-year aircraft deliveries in 2024 can be attributed to several specific factors:

1. Labor Strikes: In 2024, Boeing faced significant labor strikes that crippled production and slowed down the delivery process. These strikes, which occurred in the fall of 2024, significantly impacted the company's ability to meet its delivery targets (Reuters, 2025).
2. Quality Control Issues: Boeing has been under scrutiny for its manufacturing processes and quality control. In 2024, the FAA ordered Boeing to slow down 737 MAX production due to quality issues, further impacting delivery numbers (FAA, 2024).
3. Aircraft Malfunctions and Groundings: Throughout 2024, Boeing faced several incidents involving its aircraft, including a midair blowout on an Alaska Airlines flight and a fatal crash of a Boeing 737-800 operated by South Korean carrier Jeju Air. These incidents led to aircraft groundings and further delayed deliveries (AirInsight Group, 2025).
4. Reduced Production Rates: As a result of the above factors, Boeing was forced to reduce its production rates for several aircraft models. For instance, the company produced 230 narrow and widebody commercial aircraft in 2024, 149 less than in 2023 (AirInsight Group, 2025).
5. Competition from Airbus: Boeing's main competitor, Airbus, delivered twice as many planes in 2024 as Boeing, with 755 deliveries compared to Boeing's 341. This further widened the delivery gap between the two companies (AirInsight Group, January 2, 2025).

Boeing's Delivery Performance vs. Competitors

Boeing's delivery performance in 2024 was significantly lower compared to its main competitor, Airbus. According to AirInsight Group, Boeing delivered 341 planes in 2024, a 34% decrease from the previous year. In contrast, Airbus delivered 755 planes in 2024, which was 14 more than the year prior. This marks Boeing's lowest delivery count since the pandemic in 2020 and 2021 (AirInsight Group, January 2, 2025).

Boeing's top-selling 737 models saw a decrease in deliveries as well. In 2024, Boeing delivered 200 MAX 8s, 42 MAX 8-200s, and 21 MAX 9s, which is 131 less than the 737 deliveries in 2023. Additionally, Boeing delivered only 50 787s in 2024, compared to 73 Dreamliners a year prior (AirInsight Group, January 2, 2025).

Airbus, on the other hand, had a much better year in terms of deliveries. The European plane maker completed the handover of 766 jets in 2024, which was four short of its target (The Guardian, January 14, 2025). This significant gap in delivery numbers between Boeing and Airbus highlights the challenges Boeing is currently facing in its production and manufacturing processes.

Potential Long-Term Implications

Boeing's delivery decline in 2024, coupled with ongoing production issues, labor strikes, and government scrutiny over safety and manufacturing processes, has significant potential long-term implications for its financial health and market position. The decline in deliveries, along with the widening gap between Boeing and Airbus, could lead to a decrease in orders for Boeing's aircraft, further impacting its financial health and market position.

Boeing's delivery decline also has implications for its stock price and investor confidence. The company's stock took a roughly two percent hit after a Boeing 737-800 operated by South Korean carrier Jeju Air crashed on a runway at Muan International Airport. This incident, along with other recent issues, has raised concerns about Boeing's safety and manufacturing processes, which could lead to a decrease in investor confidence and a further decline in the company's stock price.

In summary, Boeing's delivery decline in 2024 has significant potential long-term implications for its financial health and market position. The widening gap between Boeing and Airbus, the shift in strategy by airlines, and the decrease in investor confidence could all contribute to a further decline in Boeing's market position and financial health in the coming years. However, Boeing's long-term prospects remain uncertain, and investors should closely monitor the company's progress in addressing its production and quality control issues.