Boeing Co. (BA.N) announced on Tuesday that it had delivered a total of 43 commercial jets in July, matching the same month’s output last year despite ongoing supply chain challenges that have impacted the industry. The company, led by new CEO Kelly Ortberg, is working to ramp up aircraft production by year’s end, a crucial step towards restoring its position as a leading aircraft manufacturer.
In a significant boost to the company, Boeing handed over 31 MAX jets to customers, including a few to Chinese carriers, marking the resumption of deliveries to China after regulatory delays. This milestone comes as a welcome relief for Boeing, which has faced significant challenges in recent years, including the grounding of the 737 MAX fleet following two fatal crashes.
The company also reported a surge in orders, with 72 gross orders in July, up from 52 last year, including 57 orders for the 737 MAX planes. This increase in demand is a positive sign for Boeing, which has faced intense competition from rival Airbus in recent years.
However, Boeing’s progress is tempered by its agreement to pay at least $243.6 million to settle a criminal fraud conspiracy charge related to a 2021 agreement with the U.S. Justice Department. This settlement highlights the challenges Boeing faces as it works to overcome supply chain hurdles and regulatory scrutiny.
Year-to-date, Boeing has delivered a total of 218 airplanes, including 166 MAX jets, and reported adjusted net orders of 98 airplanes. As the company works to overcome these challenges, its focus on production growth remains a key priority. Boeing is investing heavily in new technologies and processes to improve efficiency and reduce costs, and is working closely with suppliers to address supply chain issues.
Despite these challenges, Boeing remains confident in its ability to meet growing demand for commercial aircraft. The company forecasts a significant increase in global demand for aircraft over the next decade, driven by growing passenger traffic and fleet replacement needs. With its focus on production growth and innovation, Boeing is well-positioned to capitalize on this trend and restore its position as a leading aircraft manufacturer.
