Boeing's 2024 aircraft deliveries are expected to significantly decline due to strikes and safety incidents.
Boeing's new aircraft deliveries in 2024 fell to the lowest level since the pandemic, according to Reuters, due to a severe strike in the fall of 2023 and multiple factors. The company delivered a total of 348 commercial aircraft in 2024, down 34% from the previous year's 528, and new orders also shrank dramatically, less than half of the record set less than a year ago. The production quality issues, stricter regulatory reviews, supply chain delays, and a seven-week strike together slowed the assembly lines of the US aircraft manufacturer, according to reports. The Boeing 737 production line reportedly restarted in late December 2024, with the company delivering 30 aircraft in December, including 17 737 MAX and 9 787, totaling more than the previous two months. As most of the aircraft manufacturer's revenue comes from delivering aircraft, the drop in deliveries in 2024 undoubtedly put significant pressure on Boeing's financial situation. Kelly O'Donnell, the company's new CEO, told investors in October 2024 that he expected the company to continue facing funding pressure in 2025. In terms of orders, Boeing's total annual orders fell from 1,456 in 2023 to 569 in 2024, and the net orders after cancellations and conversions also dropped from 1,314 to 377. Adjusted for accounting standards, Boeing's net orders in 2024 were 317. However, Boeing's rival Airbus performed strongly in 2024, delivering 766 aircraft and receiving 826 net orders after cancellations and conversions. This marked the sixth consecutive year that Airbus outperformed Boeing in terms of deliveries and orders. In December 2024, Boeing announced another round of layoffs, affecting nearly 1,000 people in Washington and California. The layoffs were part of the company's plan to cut 17,000 jobs globally, announced in October 2024. The affected positions included engineers, human resources, and analysts, affecting Boeing's civil, defense, and global services departments. At the beginning of 2024, a serious accident involving an Alaska Airlines 737 MAX 9 led to the FAA's suspension of production of the aircraft model. Investigations found serious lapses in quality control and employee training during the production process, and the federal aviation regulation was considered ineffective. In early July 2024, Boeing announced a "principled" agreement with the US Department of Justice to plead guilty for two fatal crashes of 737 MAX passenger jets in 2018 and 2019. Meanwhile, Boeing faced multiple lawsuits, including a class-action lawsuit filed by flight passengers who claimed that Boeing prioritized profits over safety, and even a class-action lawsuit filed by Boeing shareholders.
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