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Boeing deliveries drop 27% in June year-on-year

Published 07/09/2024, 11:03 AM
Updated 07/09/2024, 11:06 AM
© Reuters. FILE PHOTO: A Boeing 737 Max aircraft during a display at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022.  REUTERS/Peter Cziborra/File Photo
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By Allison Lampert

(Reuters) - Boeing (NYSE:BA) said on Tuesday it delivered more commercial jets in June than in any other month this year, but the total of 44 planes represented a 27% drop on an annual basis amid a whirlwind of legal and production challenges.

The company has pledged to expand production by the end of the year, after wrestling with supply chain snags and operating a slower assembly line since a Jan. 5 mid-air blowout of a door plug on a 737 MAX 9 jet that heightened regulatory scrutiny.

On Sunday, the U.S. Justice Department said Boeing agreed to plead guilty to a criminal fraud conspiracy charge linked to two 737 MAX fatal crashes in 2018 and 2019, raising questions about the planemaker's ability to secure government contracts.

The company handed over five 777 freighters, including two of the jets to Air China (OTC:AIRYY), confirming Reuters reports that widebody deliveries to China have resumed after being halted this spring due to a Chinese regulatory review.

Boeing also reported 11 orders in June for 777 freighters, the third-highest month ever for the model, out of a total of 14 gross orders for the month.

After adjustments to reflect the backlog, Boeing reported adjusted net orders for the month of a negative 104. The planemaker did not give a specific explanation.

That brought Boeing's gross order total so far this year to 156. After removing cancellations and conversions, Boeing posted a net total of 115 orders since the start of 2024.

Following further accounting adjustments, Boeing reported adjusted net orders of 26 airplanes so far this year.

© Reuters. FILE PHOTO: A Boeing 737 Max aircraft during a display at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022.  REUTERS/Peter Cziborra/File Photo

Boeing delivered 175 planes in the year to date, trailing its European rival Airbus which delivered 323 airplanes in the first half.

The world's largest planemaker also said this week that it had won 327 gross orders in the first six months of 2024, or a net total of 310 after cancellations.

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