Boeing is facing challenges again as deliveries of the B737 MAX are expected to be delayed by another three to six months. This could result in some aircraft scheduled for 2025 not being delivered until 2026. This information comes from a report by Bloomberg, citing internal sources. While Boeing has not officially commented on the report, the upcoming quarterly results on July 31 will provide more clarity on the current delivery forecasts.
Norwegian Group, a major B737 MAX customer, announced in its quarterly report on July 12 that deliveries of its ordered aircraft have been delayed by 8-11 months. Norwegian has ordered a total of fifty B737-8s with 30 options and is leasing additional aircraft. The airline said it had been partially compensated for the delay costs incurred, but acknowledged that the delays have had a significant impact on its operations.
In summer 2024, Norwegian Air Shuttle AOC and Norwegian Air Sweden AOC's fleet will comprise 86 B737s, consisting of 64 B737-800s and 22 B737-8s. This number is one aircraft below the 87 aircraft originally forecast. Despite the delays, Norwegian is sticking to its target of 12% capacity growth in 2024, but has had to seek additional capacity from third-party suppliers to compensate for the delivery delays. Currently, Norwegian operates two A320-200s on wet lease from DAT (R6, Kaunas International) to meet demand. Norwegian has paid 34 million Norwegian kroner (US$3,2 million) for ACMI contracts to compensate for the delivery delays in the second quarter of 2024.
Due to ongoing delays at Boeing, Norwegian expects growth to slow in 2025 compared to 2024. Nevertheless, the holding company plans to expand its fleet to over 2025 aircraft for the summer of 90. To mitigate the impact of the delays, Norwegian is currently evaluating the options to extend the leases for its current B737-800s until 2025 and 2026. Deliveries of the B737 MAX are now expected between 2025 and 2028, while the options, which can be converted to B737-10, are for deliveries between 2028 and 2030.
Background and challenges at Boeing
The delays in the delivery of the B737 MAX are another chapter in a series of difficulties for Boeing that have dogged the company since the 737 MAX was grounded worldwide in 2019. The grounding was imposed due to two fatal crashes that killed a total of 346 people. Since the grounding was lifted in late 2020, Boeing has worked hard to regain customer and public trust. However, ongoing production problems and the COVID-19 pandemic have continued to weigh on the company.
The recent delays could be due to a variety of factors, including supply chain issues and production challenges. While Boeing has not given specific reasons for the delays, it is likely that the complex global supply chains and rigorous certification processes play a role.
The delays at Boeing have far-reaching implications for the entire aviation industry. Airlines like Norwegian, which rely heavily on the on-time delivery of new aircraft, must now develop alternative strategies to meet their fleet plans and growth targets. This could lead to increased competition for available aircraft and leasing capacity and increase operating costs for airlines.
Boeing's delivery delays are another setback for the company and pose a significant challenge for customers like Norwegian. The aviation industry is faced with adapting to these delays and finding alternative solutions to minimize the impact on operations and growth. The coming months and the release of Boeing's quarterly results will be critical to provide more clarity on future delivery forecasts and the company's actions to address these challenges.