Boeing Stock Plunges on Disappointing December Deliveries

Boeing (BA) stock took a nosedive on Tuesday, January 10, 2025, following the company's release of its fourth-quarter and full-year 2024 delivery figures. The American plane maker's Q4 deliveries were well below those of its European rival Airbus, which recently reported its highest deliveries since 2019. Boeing delivered 57 commercial planes in Q4 and 348 for the full year, down from 157 and 528, respectively, a year ago. By contrast, Airbus reported 269 deliveries in the fourth quarter and 766 in 2024, its highest full-year total since 2019.



Boeing's fourth-quarter production was impacted by a nearly two-month strike by its union machinists, which was resolved in November with a new contract agreement. The strike, which halted production at several Boeing facilities, including those assembling the 737 Max, 777, and 767 aircraft, significantly impacted Boeing's ability to deliver aircraft in December.

Boeing is still trying to find its footing a year after an Alaska Airlines (ALK) flight aboard a 737 MAX plane had a door panel detach in midair. Earlier this month, outgoing Federal Aviation Administration (FAA) head Mike Whitaker said the plane's production rate would remain capped at 38 monthly planes until Boeing could convince federal regulators it had corrected manufacturing quality and safety issues.

The hit to Boeing's finances and reputation extended to sales of new aircraft. Boeing received no 737 Max orders for at least two months and ended the year far behind Airbus in total net orders for commercial planes, an indicator that factors in cancellations. Airbus had 826 net orders, while Boeing had 317.

Boeing's lower-than-expected December deliveries and the subsequent impact on its stock price raise important questions for investors. What specific factors contributed to Boeing's lower-than-expected December deliveries? How does Boeing's delivery performance compare to its competitors, such as Airbus? What impact will the recent strike and production halts have on Boeing's 2025 financial outlook?



In conclusion, Boeing's stock price took a significant hit following the release of its fourth-quarter and full-year 2024 delivery figures. The company's lower-than-expected December deliveries, impacted by a machinist strike and production caps, highlight the challenges Boeing faces in ramping up production and deliveries. As investors consider Boeing's prospects for 2025, they should closely monitor the company's ability to address these challenges and regain its competitive edge in the commercial aerospace market.