The US aircraft manufacturer Boeing remains in a tense situation after a seven-day industrial dispute significantly affected production and deliveries. The recently published figures for November 2024 clearly show the aftermath of the conflict, which not only paralyzed the production lines but also put further pressure on the company's economic stability. With only 13 aircraft delivered in November, Boeing is well below the level of the same period last year, when 56 aircraft were handed over to customers.
The industrial action began in early October 2024, when around 33.000 employees at various Boeing locations. The strike, triggered by disagreements over salaries and threatened job cuts, brought production in the factories for the models 737 MAX, 767, 777 and 777X It was not until the beginning of November that an agreement was reached with the unions, but this was not without consequences. Shortly afterwards, Boeing announced the dismissal of several hundred employees, including more than 2.000 employees in Washington and 700 in Missouri.
Despite the settlement of the dispute, production in November remained far below expectations. Boeing only delivered nine 737 MAX, two 777 Freighter and two 787-9 In comparison, the number was 14 aircraft in October - an already low number compared to the company's production targets.
Quality and safety problems burden production
The limitations on production rates were already caused at the beginning of the year by significant safety and quality deficiencies in the DO NOT MAX These problems, which occurred at Alaska Airlines, prompted US regulators to closely monitor production. Although Boeing had planned to increase the production rate of the 737 series to 38 units per month to increase, this target was not even close to being achieved in November.
However, the company stressed that it was taking a cautious approach to resuming production and that quality and employee training were its top priorities. "Safety and quality come first," the company said in a statement. This approach was also reflected in the low delivery figures.
Supply chain problems and weakening wide-body aircraft production
The production of the Boeing 787 in Charleston, South Carolina, was unaffected by the strike. Nevertheless, the company was only able to deliver two of these wide-body aircraft in November. The reason for this is ongoing supply chain bottlenecksthat have been troubling Boeing since the beginning of 2024. These challenges affect not only 787 production, but also the resumption of production of the models 767, 777 and 777X, which Boeing says will begin again in Everett in the coming days.
Order situation: light and shadow
In addition to the production problems, the order situation also remained mixed. In November, Boeing reported 49 gross orders, including 34 737 MAX jets. At the same time, however, there were 14 cancellations, including a particularly serious one: The European airline group TUI cancelled its order for 14 737 MAX jets and decided instead to purchase these aircraft from BOC Aviation This decision represents a significant setback for Boeing, as the 737 MAX is considered a key source of revenue.
For 2024, Boeing has so far been able to 427 gross orders and after cancellations and conversions 370 net orders Given the turbulence of the year, it remains questionable whether the company will be able to achieve its planned targets for 2025.
glimmer of hope on the stock market
Despite the difficult situation, recent developments also sent positive signals: The news of the resumption of 737 MAX production Boeing shares dropped by 4,5% This upturn reflects investors' confidence that Boeing could regain stability in the medium term.
Outlook: Challenges remain
Boeing faces a number of challenges as it approaches the end of 2024. The labor dispute has not only disrupted production plans, but has also exacerbated the company's financial losses. Addressing the safety issues and eliminating supply chain bottlenecks will be crucial to whether Boeing can turn things around next year. However, the focus on safety and quality should help regain the trust of customers and regulators.
and 