Boeing faced significant challenges in 2024 as it delivered fewer commercial aircraft compared to its European competitor, Airbus. Data released on Tuesday revealed that Boeing supplied 348 jetliners to customers, a decrease of more than a third from the previous year's output. This number was also less than half of the aircraft delivered by Airbus during the same period.
Deliveries are crucial for plane manufacturers as they represent a significant source of revenue, with buyers typically paying a substantial portion of the purchase price upon order fulfillment. The majority of Boeing's deliveries in 2024 were 737 Max jets, underscoring the model's importance to the company despite the challenges it has faced.
Boeing had anticipated increasing production in 2024; however, a safety incident involving a 737 Max shortly after takeoff led to the Federal Aviation Administration imposing production limits until safety concerns were addressed. This setback, coupled with a strike by factory workers assembling key aircraft models, further hindered Boeing's delivery capabilities.
The strike, which lasted over seven weeks, impacted production at Boeing's facilities in Washington state. It was resolved after the company agreed to workers' demands for pay raises and improved benefits. The financial and reputational repercussions of the safety incidents and production challenges also affected Boeing's sales performance.
Boeing received no new orders for the 737 Max for a significant period, resulting in a substantial gap in total net orders compared to Airbus. Airbus secured 826 net orders, while Boeing lagged behind with 317. The company's financial struggles, stemming from the aftermath of the 737 Max crashes in 2019, underscored the importance of generating revenue through aircraft deliveries to stabilize its financial position.
