Boeing recently announced its 1st quarter 2023 financial results, stating that despite ongoing production issues, it still expects to deliver between 400 and 450 Boeing 737 MAX aircraft throughout the year. Production problems first surfaced in mid-April 2023, when Spirit AeroSystems informed Boeing of a non-standard manufacturing process used on two fittings in the aft fuselage section of certain 737 airplanes. This issue affected all currently produced 737s, including the 737 MAX-8 and the P-8 Poseidon military derivative.
Navigating Production Issues and Deliveries
Boeing remains confident in its ability to meet its delivery goals for the year, stating, “While near-term deliveries and production will be impacted as the program performs necessary inspections and rework, the program still expects to deliver 400-450 airplanes this year.” The company also plans to increase the production of the 737 to 38 per month in 2023, eventually reaching 50 per month in 2025 or 2026. The production rate of the 787 is also expected to ramp up, with an increase to five per month in late 2023 and eventually reaching 10 per month in 2025 or 2026.
The 737 MAX is not the only program affected by production stoppages. In February 2023, Boeing encountered a supplier analysis error related to the 787’s forward pressure bulkhead, prompting a temporary pause in deliveries. Deliveries resumed in March 2023 after the issue was resolved. Additionally, Boeing delivered just a single 767F in the 1st quarter of 2023 due to a problem with the center fuel wing tank not being primed and cleaned properly by a supplier.
Boeing’s Financial Performance and Future Outlook
Despite the challenges faced, Boeing outperformed its main rival, Airbus, delivering three more aircraft during the first quarter of 2023. The company reported $17.9 billion in revenue and a net loss of $425 million, which is a significant improvement compared to its net loss of $1.2 billion in the 1st quarter of 2022. David Calhoun, President and CEO of Boeing, expressed confidence in the company’s goals for the year and the long term, despite supply chain disruptions.
Boeing is navigating a challenging period with production issues affecting its 737 MAX and other aircraft models. Despite these setbacks, the company remains focused on meeting its delivery goals and maintaining stability for its customers. With a strong financial performance in the 1st quarter of 2023 and a commitment to addressing production challenges, Boeing looks set to continue as a leading player in the global aerospace industry.
Source: Aerotime
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