Boeing (BA) Aircraft Deliveries Impacted by Strike Amid Competitive Pressure

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3 days ago
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Boeing Company reported the delivery of 33 jet aircraft in September, marking an increase of six units compared to the same month last year. However, the company remains concerned about the ongoing machinists' strike, now in its fourth week, which may affect future deliveries. By the end of September this year, Boeing had delivered a total of 291 airplanes, falling short of the 371 units delivered by the same time in 2023. In contrast, competitor Airbus had delivered 447 planes by the end of August this year.

Aircraft deliveries are crucial for Boeing, as the company has already incurred losses exceeding $8 billion this year, with customers typically paying the majority of the price upon receiving the aircraft. Of the 33 planes delivered by Boeing in September, 27 were manufactured at its Renton, Washington plant. On September 13, machinists at this facility initiated a strike after overwhelmingly voting against a tentative agreement between the company and the union. Although negotiations resumed this week, the union previously rejected Boeing's improved pay offer.

Boeing is scheduled to release its quarterly earnings report on October 23, which will include details about the financial impact of the strike. Notably, four of the planes delivered in September were 787 Dreamliners manufactured at Boeing's non-union facility in South Carolina. Additionally, Boeing secured 66 new aircraft orders this month.

Earlier this year, Boeing faced challenges related to a near-catastrophic incident involving a new 737 Max 9 aircraft. On January 5, a plug burst out of an emergency exit door due to missing bolts, which are crucial for securing the plug. The National Transportation Safety Board's preliminary report, released on February 6, indicated that the incident occurred because the four bolts meant to secure the plug were absent during the aircraft's production.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.