Take a moment to imagine the hustle and bustle in Boeing’s manufacturing units as the company announced its delivery of 50 jets in May – an impressive leap of 43% improvement from the same month in the previous year. Even though it fell slightly short against European competitor Airbus, who delivered 63 planes, Boeing’s upward trajectory tells a tale of persistence and resilience.
In the heart of Boeing’s success story in May, the 737 MAX took center stage. The company confirmed on a Tuesday that deliveries of the 737 MAX had risen to 35 jets in May, a significant leap from the 17 jets dispatched in the previous month. This notable increase in deliveries came right after Boeing had identified and rectified a bracket installation defect in the aircraft, a fact that further emphasizes the company’s commitment to safety and quality.
Broadening Horizons and Facing Challenges
While the 737 MAX dominated the scene, other models also had their moment under the sun. Boeing delivered a total of eight 787 Dreamliners, three 767 freighters, three 777 freighters, and a 737 jet set to be transformed into a P-8 Poseidon maritime patrol aircraft for South Korea.
However, the aviation industry is no stranger to turbulence, and both Boeing and Airbus are currently grappling with supply chain challenges. These issues could potentially dampen delivery rates, a key metric closely monitored by Wall Street analysts, since these companies earn a majority of the aircraft payment only after delivering the jets to the customers.
Looking Ahead with Boeing
Despite the looming uncertainties, Boeing remains undeterred. Late in May, Brian West, Chief Financial Officer of Boeing, shared that the company had started delivering reworked 737s. He projected an optimistic picture with the delivery rates of the MAX predicted to rise from about 30 per month to roughly 40 per month in the second half of the year.
On a less positive note, Boeing anticipates a possible slowdown in Dreamliner deliveries in June due to a recently disclosed production glitch. This problem involves minuscule gaps in a fitting on the horizontal stabilizer at the base of the 787’s tail, and it requires fixing before the planes can be delivered to customers.
Adding Up the Numbers
When it comes to numbers, Boeing had a mixed bag in May. The company booked 69 orders, including 59 MAXs and 10 Dreamliners. However, it also reported 11 cancellations, which comprised four 737 MAXs for Air Niugini, six 777 freighters for Hong Kong International Aviation, and one 777-300ER for an unidentified customer.
As we look at the bigger picture for the first five months of the year, Boeing delivered 206 aircraft. This falls short compared to Airbus, which delivered 244 aircraft over the same period. Airbus also maintains a slight lead in net orders, tallying 144 to Boeing’s 127.
In summary, despite a challenging landscape, Boeing has shown remarkable agility in navigating through production issues and managing delivery performance of its planes.
Source: Reuters
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