Boeing Co. said it delivered 27 commercial jets in September, marking the third consecutive month that shipments have declined as manufacturing glitches put its annual target in jeopardy.
(Bloomberg) — Boeing Co. said it delivered 27 commercial jets in September, marking the third consecutive month that shipments have declined as manufacturing glitches put its annual target in jeopardy.
The US planemaker delivered 15 Max jets last month and 70 of its 737 family airplanes during the third quarter, according to data posted to its website. That’s a 20% drop from the year-earlier reporting period as Boeing contended with time-consuming repairs for the latest defect uncovered by Spirit AeroSystems Holdings Inc. Sales fared better, with Boeing notching 224 gross jet orders against 10 cancellations in September.
Defects unearthed at Wichita, Kansas-based Spirit AeroSystems have hampered Boeing’s effort to speed the manufacturing pace in its factories at a time when customers are clamoring for new aircraft. Deliveries are closely watched by investors since each 737 handed off to customers generates about $10 million in free cash flow for the manufacturer, Jefferies analyst Sheila Kahyaoglu estimated in an Oct. 9 report.
Read more: Boeing Warns 737 Deliveries to Be at Low End of 2023 Target (3)
Boeing will need to ship 38 of its 737 family models each month in the final quarter to reach the low end of its goal of delivering between 400 and 450 of the narrowbody jets this year. While that’s the same pace as Boeing’s stated 737 production rates, it leaves the manufacturer with little leeway as it closes out 2023.
In fact, just 22 single-aisle 737s rolled out of Boeing’s Seattle-area factory in September, down from 31 of the jets in August, Jefferies said, citing market intelligence from Aero Analysis Partners. Inspection and repairs of the aft-pressure bulkheads in some 737 models due to the latest Spirit issue are likely to stretch into October and November, adding risk to the delivery target, Kahyaoglu said.
Other highlights from Boeing’s September orders and deliveries tally include:
- The company delivered 10 of its 787 Dreamliners, the highest monthly total this year
- Gross orders, year-to-date, rose to 848, increasing Boeing’s backlog to 5,172 orders
Airbus SE said Tuesday that it delivered 55 aircraft in September, bringing handovers so far this year to 488 planes. The European company has a goal of reaching 720 deliveries this year.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.