Home World Business Boeing Struggles in 2024: Deliveries Lag Behind Airbus

Boeing Struggles in 2024: Deliveries Lag Behind Airbus

Boeing 2024 deliveries
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In 2024, Boeing faced significant challenges, delivering only 348 airplanes, a sharp decline of about one-third compared to the previous year. This downturn can be attributed to two main factors: a midair door panel blowout incident and a machinist strike in the fall that halted production. As a result, Boeing’s delivery numbers widened the gap with its chief competitor, Airbus, which delivered 766 jetliners in 2024, marking its highest output since 2019.

December Deliveries

In December alone, Boeing managed to deliver 30 airplanes, signaling a cautious recovery as production of its bestselling 737 Max planes resumed following the nearly eight-week machinist strike that concluded in November. Deliveries are crucial for manufacturers since it is during this phase that customers typically pay the majority of an airplane’s price.

Impact of Supply Chain Strains

Both Boeing and Airbus are currently grappling with supply chain challenges that have hampered production and delayed the fulfillment of their extensive backlogs. This situation has led to a shortage of available aircraft from suppliers, resulting in skyrocketing lease rates. According to aviation data firm IBA, lease rates are expected to reach record levels this year, adding further strain to airlines looking to expand their fleets.

Order Activity

Despite the delivery shortfall, Boeing recorded 142 gross orders in December, which included significant deals such as 100 737 Maxes for Turkey’s Pegasus Airlines and 30 787s for flydubai. The latter’s intention to purchase was first revealed during the Dubai Air Show in late 2023. However, Boeing also had to remove more than 130 orders from its books for India’s now-defunct carrier, Jet Airways.

For the year, Boeing’s gross orders totaled 569, with net orders accounting for 377 airplanes after adjusting for accounting changes. In contrast, Airbus announced it achieved 878 gross orders and 826 net orders in 2024.

Looking Ahead

Boeing is set to release its fourth-quarter and full-year results on January 28, where CEO Kelly Ortberg and other leaders will face investors’ inquiries regarding plans to ramp up production and restore profitability. The aerospace giant’s ability to navigate these challenges and improve its delivery figures will be critical in 2025 as it seeks to regain its footing in the competitive aircraft manufacturing market.

Conclusion

As Boeing works to address production hurdles and regain market share, the focus will remain on its strategy for improving deliveries and strengthening its operations. The gap with Airbus may be significant, but with concerted efforts and innovation, Boeing aims to turn the tide in the coming years.

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