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Boeing (BA.US) further delayed 737 Max deliveries despite winning orders

AInvestFriday, Jul 12, 2024 9:11 am ET
1min read

Boeing (BA.US) has informed some customers that deliveries of 737 Max aircraft, originally scheduled for 2025 and 2026, will be further delayed by 3-6 months, and some aircraft originally scheduled for next year have been pushed back to 2026, according to sources.

The company has secured a 35-aircraft order for 737 Max aircraft from Aviation Capital Group, a Boeing 737 Max aircraft leasing company owned by Tokyo Century, according to a Friday statement. The aircraft are expected to be delivered before 2031, which is a boost for Boeing, which is in the midst of its lowest point. However, Boeing recently pushed back a key production milestone for its 737 jet by three months due to ongoing supply pressures.

The company declined to comment and is in a quiet period ahead of its second-quarter earnings report on July 31.

Boeing has been trying to recover from a series of regulatory reviews and production constraints following the in-flight break-up of a Boeing 737 Max9 aircraft in January.

In addition to these challenges, supply chain disruptions and other headwinds have led to a slowdown across the industry. Its rival Airbus Group (EADSY.US) has also pushed back its production targets by two years and lowered its delivery targets for this year.

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