Summary
- Boeing has delivered the highest number of 737 MAX aircraft to China since 2018.
- Boeing aims to maintain a higher delivery rate to clear inventory backlog and improve cash flow.
- Delivery rates are dependent on Chinese carriers’ ability to absorb the new aircraft into their fleet.
Data from Boeing has revealed that the manufacturer has delivered the highest number of Boeing 737 MAX aircraft to China this year since 2018. The manufacturer hopes to maintain this delivery rate to clear the backlog of aircraft earmarked for China, which would help reduce its costs and raise cash.
With over 60 aircraft destined for China, the delivery rate will depend on how quickly the airlines can integrate the new aircraft into their operations.
Record delivery in August
While the official August delivery data will only be available next week, reports from BNN Bloomberg estimate that
Boeing
delivered nine of its
Boeing 737 Max
narrowbody aircraft to its Chinese customers during August. The number of deliveries last month was significantly higher than in all other months since December 2018.
By continuing this rate of delivery, Boeing will be able to clear its aircraft inventory and reduce the aircraft storage-related costs that the manufacturer has to bear.
Photo: Marco Menezes | Shutterstock
Additionally, with every aircraft that gets delivered, Boeing will receive the delivery payments for these aircraft, which will help allow the manufacturer to raise cash and improve its balance sheet.
With an estimated 64
Boeing 737 MAX 8
aircraft currently in inventory waiting to be delivered to Chinese carriers, Boeing does have aircraft it can deliver. However, the rate of delivery is contingent upon the airline’s ability to receive the aircraft and integrate it into its fleet. The carriers based in China have also ordered Boeing 737 MAX 7s and 10s; however, these aircraft types are still pending FAA certification.
Delivery rate over the years
Analyzing Boeing’s delivery data for the 737 MAX to China, the manufacturer has delivered an estimated 109 aircraft in the past six years. These aircraft were delivered to airline customers such as
Air China
or
China Southern Airlines
and also to aircraft leasing corporations based in China. However, when dissecting delivery data per individual year, it is clear that there has not been any consistency.
Photo: Abid Habib | Simple Flying
*data for 2024 is year-to-date and includes the estimated nine aircraft delivered in August.
As the data shows, there has been a significant drop in 737 MAX deliveries between 2018 and 2024, with 0 aircraft being delivered in 2020 and 2023. This is because China was one of the first countries to ground all 737 MAX operations after the two unfortunate crashes and one of the last to unground the aircraft type. Plus, the travel downturn in 2020 saw aircraft delivery reduction worldwide.
Other aircraft to be delivered
Looking at the broader data, Boeing’s unfilled orders list (as of July 31st) shows that apart from a significant number of 737 aircraft to be delivered, the manufacturer also has a few larger aircraft to deliver in the future. This includes the larger Boeing 787-9 Dreamliners for a few customers and a pair of Boeing 777-F freight jets for Air China Cargo. The overall unfilled orders for Chinese customers stand at over 130 aircraft.
Photo: Bjoern Wylezich | Shutterstock
Despite the series of recent troubles Boeing is facing, the manufacturer is in the process of turning things around. A new CEO has been appointed, and changes have been made within the organization’s management and manufacturing processes to improve quality control and the airworthiness of future aircraft.
However, it will take some time before Boeing can get everything in order and return to the production rate it wants to achieve with its aircraft, as the FAA currently caps it.