Boeing Deliveries Fall To Record Lows

While Boeing has successfully ended strike action, its ramifications are more than still being felt following a new announcement.

The American planemaker published its deliveries and orders update for October 2024, painting a bleak picture with output dropping to record lows amid strike action that occurred during the company’s previous month.

From September 12 through November 5, Boeing saw more than 30,000 of its workers walk out on the job to seek a better contract for their work, which they ultimately received.

However, because of these walkouts, Boeing’s output rate dropped dramatically, with just 14 aircraft delivered to commercial airline customers in the month.

These numbers, however, were expected given the number of employees not working on the production floor, which was limiting output rates.

The walkout affected core programmes such as the 737 MAX during the strike. This family is responsible for the vast majority of monthly deliveries and, if affected as it has been, will see its numbers crumble.

Furthermore, it’s important to remember that even without strike action adversely affecting the business, there were also considerations, such as the increased oversight from the FAA throughout 2024, that have limited numbers.

As November comes to a close, Boeing says it’s definitely working on returning to normality, or a new normal, even with the increased oversight. As a result, it’s still expected to be many weeks before a sense of calm can hit the production floor and output rates can be stabilised.

The stabilisation of output rates still factors in the increased oversight, which has resulted in Boeing being barred from increasing production to higher totals because it fears that works to rebuild the culture will be in vain.

While it’s all well and good for Boeing to take time rebuilding, it knows it needs to make meaningful progress. This is driven by the planemaker’s poor financial state, which is beginning to raise alarm bells.

Boeing feels it must ramp up 737 production to the capped rate of 38 and, with that and time, hopefully, increase further if it can continue to show the Federal Aviation Administration meaningful improvements.