Boeing’s aircraft deliveries in the first three months of the year were at the lower end, marking the smallest number since the middle of 2021. This underlines the long road to recovery the manufacturer faces following a scary incident in January.
Boeing transferred 29 planes in March, a marginal increase from the 27 given in each of the initial two months of 2021, totalling 83 in the quarter. The bulk of these aircraft were 737 Max jets, confirming the model’s critical role in supporting Boeing’s operations.
The airplane manufacturer decreased the production rate of the 737 series, providing a buffer period for workers and suppliers to address the issue of missing or damaged components and also to restructure its production lines. These measures aim at enhancing the overall quality of its craftmanship after an unsettling incident in January where a 737 Max lost a considerable portion of its fuselage while still airborne.
Boeing’s CFO, Brian West, emphasised their cautious approach saying they’re deliberately slowing down to ensure the job is done correctly. U.S. regulators have set a production limit of 38 narrowbody planes each month until they witness the successful application of the quality measures. Even then, the production of Boeing is still falling short, having only produced 24 737s in March. Despite the limitation, this number is an advance from February, with 18 jets of the same model being produced.
During this quarter, 16 wide-body jets have been delivered by Boeing – however, none of them were its 777 freighters. A lack of supplies including engines from General Electric Co is challenging the manufacturer.
Even amidst Boeing’s production woes, orders have seen a resurgence attesting to the robust demand for new airplanes in a situation where both Boeing and its competitor, Airbus, are experiencing output constraints.
Boeing clocked 113 gross orders against two cancelled ones in March. Included among these were 85 Max 10 planes for American Airlines, eight 777X passenger jets for Ethiopian airlines and an additional 20 of the sizeable twin-aisle jets for an anonymous buyer. Five planes were also removed from the backlog due to U.S. accounting rules for risky orders, but they remain in Boeing’s ledger.
Boeing’s gross orders totalled 131 for the first quarter, including cancellations and the accounting adjustment, with net orders adding up to 125. The company retains a backlog of 5,591 pending orders.