Boeing Jet Deliveries Plummet Post-Strike: A Path to Recovery?

The aerospace industry has been grappling with a series of challenges in recent years, with Boeing being at the forefront of these issues. The company's recent struggles, including the grounding of the 737 MAX and a two-month strike by its machinists, have significantly impacted its production and delivery schedules. In November 2024, Boeing's jet deliveries fell to a mere 13 aircraft, highlighting the extent of the challenges the company faces in ramping up production post-strike.

The two-month strike by Boeing's machinists, which ended in November, had a significant impact on the company's production and supply chain. The work stoppage halted production of most Boeing commercial jets and affected many suppliers, who had to recall laid-off employees. Boeing used the four weeks following the strike to focus on training, certifications, and completing work on in-progress aircraft. However, even pre-strike production rates won't be enough to return the company to profitability, with cumulative core operating losses of $39.3 billion since 2018.



Boeing delivered 13 aircraft in November, a 31% decline from the same period in 2023. The company also booked 49 gross orders for the month, which was reduced by 14 cancellations. These figures underscore the challenges Boeing faces in regaining customer confidence and securing new orders. To address these issues, Boeing is focusing on resuming production at pre-strike rates, addressing quality and safety issues, and accelerating deliveries.

The Federal Aviation Administration's (FAA) oversight and quality checks have also played a significant role in delaying Boeing's return to full production capacity. After the Alaska Airlines incident in January 2024, the FAA placed limits on Boeing's production rate for the 737 MAX, requiring increased quality checks and audits. This, combined with the four-week delay in restarting production following the two-month strike, highlights the serious impact of the work stoppage on Boeing's operations.

Despite these challenges, Boeing remains a compelling investment opportunity for those seeking a balanced portfolio with growth and value stocks. The company's strong brand and enduring business model make it an attractive long-term investment. However, investors should closely monitor Boeing's progress in addressing its production and quality issues, as well as its efforts to regain customer confidence and secure new orders.

In conclusion, Boeing's jet deliveries plummeted to 13 in November following the end of the two-month strike. The company faces significant challenges in ramping up production and regaining customer confidence. However, with a focus on addressing quality and safety issues, accelerating deliveries, and resuming production at pre-strike rates, Boeing has the potential to recover and regain its status as a leading aerospace manufacturer. Investors should closely monitor the company's progress and consider its long-term investment potential.