Boeing struggles as 737 MAX deliveries hit lowest since 2018 crashes

12 Oct 2023 CW Team

In September, Boeing faced a significant decline in deliveries of its popular 737 MAX, marking the lowest figures since August 2021. The company struggled to address a manufacturing defect, resulting in a total of 27 deliveries for the month. Among these, 15 were Boeing MAX 8 and 9 airplanes. This drop in deliveries follows the global grounding of the MAX series in 2018 and 2019, following two fatal crashes that claimed 346 lives.

Boeing's challenges continued as they grappled with rectifying misdrilled holes on the 737 MAX 8 aft pressure bulkhead. Despite these setbacks, the company secured new orders for 224 planes in September, which included 50 787s for United Airlines.

Delivery numbers are closely monitored by investors since the majority of payment for an aircraft is received upon customer transfer. Boeing's total deliveries for the first nine months of 2023 reached 371 planes, out of which 286 were 737s. In comparison, its European competitor, Airbus, delivered 488 aircraft in the first eight months, including 55 in September.

Boeing's gross orders for the year reached 848 by September, with 724 net orders after accounting for cancellations and conversions. In contrast, Airbus recorded 1,280 gross orders, which reduced to 1,241 after cancellations.

Despite these challenges, Boeing's commercial backlog saw an increase from 4,971 to 5,172 planes. Notably, September marked the first time since December 2019 that Boeing's official backlog exceeded 5,000 orders.

Additionally, Boeing awaited certification for its smaller 737 MAX 7 from the Federal Aviation Administration, a process that had extended for over a year. The company announced in July that the first delivery of the 737 MAX 7 had been postponed to 2024 due to these on-going evaluations.

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