Investing.com -- Boeing Co (NYSE:BA) has shown strong performance in its delivery operations, keeping a steady pace of aircraft deliveries in August despite the usual summer slowdown, as per analysts at BofA Securities.
This steady performance is a good sign that Boeing is managing current challenges well, including supply chain problems and possible labor issues.
Boeing delivered between 31 and 32 of its 737 aircraft in August, matching the figures from the previous month. This stability in deliveries is notable, especially considering August's historical tendency for weaker performance.
“Notably, 28% of August deliveries were directed to Chinese operators, signaling that the reactivation of Chinese deliveries is already boosting deliveries,” the analysts said.
However, despite the steady delivery pace, year-to-date figures for 737 deliveries are still down 26% and 16% compared to the same periods in 2023 and 2022, respectively.
While the reactivation of deliveries to China is expected to support Boeing’s efforts to ramp up production and deliveries, analysts at BofA Securities caution that a potential strike by the International Association of Machinists and Aerospace Workers (IAM) could pose a risk to Boeing's operations in the coming months.
Boeing’s 787 Dreamliner program also showed resilience in August, with four aircraft delivered, down slightly from six in July.
“Boeing’s 787 deliveries declined to four aircraft from six last month, but continue to maintain a decent pace considering August’s seasonality,” the analysts said.
The production of the 787 remained steady, with five aircraft rolling out during the month, aligning with Boeing’s target to achieve a production rate of five per month by the end of the year.
However, the 787 program has faced some challenges earlier in the year due to supply chain issues and delays in seat deliveries, which have kept year-to-date deliveries 20% below last year’s levels.
Nevertheless, the consistent production rate suggests that Boeing is on track to meet its end-of-year goals, provided there are no further disruptions.
Embraer (BVMF:EMBR3) has also shown progress in its deliveries. The Brazilian aerospace company delivered around 18 aircraft in August, up from ten in July and thirteen in the same month last year.
So far this year, Embraer has delivered about 99 aircraft, which is 24% higher than in 2023 and 55% more than in 2022.
“Considering this solid performance, we remain confident that Embraer can meet its FY24 delivery targets,” the analysts said.
In contrast to Boeing and Embraer, Airbus (EPA:AIR) saw a bigger slowdown in August. As per Cirium, Airbus delivered about 43 aircraft last month, down from 77 in July. Despite this drop, Airbus's year-to-date deliveries are still up by 2% compared to 2023 and 16% compared to 2022.
However, following a guidance cut from 800 to 770 deliveries for FY24, Airbus will need to increase its delivery rate to 82 aircraft per month for the remainder of the year to meet its revised targets.