Summary
- Boeing faced multiple setbacks last quarter, including legal issues, production limitations, and low delivery figures.
- Sales were down significantly in June, with orders for commercial airplanes decreasing by 95% compared to the previous year.
- Boeing’s net order book for 2024 now stands at 310, trailing behind Airbus which recorded 327 gross orders this year.
Boeing has released its delivery figures for the second quarter of 2024. Between four commercial airplane programs, the American manufacturer delivered 92 aircraft last quarter. Defense, Space & Security Programs delivered 28 planes.
The struggles continue
The last half-decade or so has been extremely difficult for Boeing, and it is hard to classify the years from easiest to hardest. 2024 began with a major incident, the blowout of an exit door plug on an Alaska Airlines Boeing 737 MAX 9. Though no one was injured, the incident has brought major repercussions.
Boeing is now dealing with several legal problems and on Sunday, the manufacturer said it would plead guilty to the criminal charges relating to the MAX 8 crashes years ago.
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Under the plea deal, the planemaker will be fined more than $243 million.
The incident in January led to increased oversight from the Federal Aviation Administration (FAA), which limited Boeing’s manufacturing. This has been reflected heavily in the production process and Boeing’s order books.
Photo: BlueBarronPhoto | Shutterstock
Earlier today, Boeing released its Q2 delivery numbers, which improved over Q1 but were still very low. The full list is below:
|
Commercial Airplanes |
Number of deliveries |
|
737 MAX |
70 |
|
767 (freighters) |
6 |
|
777 |
7 |
|
787 |
9 |
|
Defense, Space & Security Programs |
Number of deliveries |
|
AH-64 Apache (New) |
3 |
|
AH-64 Apache (Remanufactured) |
7 |
|
CH-47 Chinook (New) |
1 |
|
CH-47 Chinook (Renewed) |
4 |
|
F-15 Models |
6 |
|
F/A-18 Models |
3 |
|
KC-46 Tanker |
2 |
|
P-8 Models |
2 |
Sales
Boeing’s sales were down significantly in June. Though June was one of the best months of 2024 for the manufacturer, orders were down 95% compared to June 2023, when it received 304 orders. In June, Boeing received orders for 14 planes, most of which were freighter aircraft. This was up from four in May and seven in April.
Only three MAX family planes were sold last month. Two were to an unknown customer, and the third was to Alaska Airlines to replace the MAX 9 due to the door plug blowout. Instead of purchasing another MAX 9, Alaska Airlines added to its MAX 10 order, which will be between 120-140.
Photo: Lukas Souza | Simple Flying
Boeing has purchased the MAX 9 involved in January’s incident, but the manufacturer has not revealed its plans for the plane.
Gross sales are now at 156 in 2024, but cancelations and conversions bring the net number down to 115. According to Reuters, accounting adjustments brought adjusted net orders down to 26 planes this year. Boeing is lagging behind Airbus, which recorded 327 gross orders this year. Cancelations mean that the net order book for 2024 now stands at 310.
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American Airlines Confirms Order for 260 Airbus, Boeing, and Embraer Aircraft
American’s order includes 85 Airbus A321neos, 85 Boeing 737 MAX 10s, and 90 Embraer E175 planes. Its A319 and A320 fleets are also up for a retrofit.
American Airlines has been Boeing’s biggest customer this year, adding 85 MAX aircraft to its order book as part of a larger order that included Airbus and Embraer aircraft. In early March, American ordered 260 aircraft and added purchase rights for another 193. Embraer won big with American’s order, with the airline adding 90 E175s to its book. Following on the success of the Airbus A321neo, American added another 85 of the type.