What's happened
Boeing announced it will delay the first delivery of its 777X jet to 2027, incurring a $4.9 billion charge due to certification and production setbacks. The company also reported strong quarterly deliveries and a growing order backlog, amid ongoing production stabilization efforts and a strike at Midwest plants.
What's behind the headline?
The delay of the 777X to 2027 underscores Boeing’s ongoing struggle with certification and production stability. Despite recent improvements, including increased 737 Max output and a positive cash flow, the $5 billion charge signals persistent financial strain. The delay also highlights how Boeing’s strategic focus on widebody aircraft remains vulnerable to certification hurdles, which could further erode market share against Airbus. The company’s cautious approach to increasing production caps reflects a prioritization of safety and stability, but it risks losing ground in a market where demand for large, long-haul jets is surging. The strike at Midwest plants complicates recovery efforts, potentially delaying military and commercial programs further. Overall, Boeing’s ability to manage these setbacks will determine its financial health and competitive position in the coming years.
What the papers say
The Guardian reports that the delay and charges are part of a series of setbacks for Boeing, with the CEO noting no new technical issues but emphasizing the 'mountain of work' needed for certification. AP News highlights the company’s recent delivery and order growth, as well as the FAA’s recent easing of restrictions on the 737 Max, which has helped stabilize production. Both sources agree that the delays are primarily certification-related, but The Guardian emphasizes the financial impact and the strategic importance of the 777X program, while AP News focuses on the broader recovery and demand for Boeing’s aircraft. The contrasting perspectives underscore the tension between Boeing’s operational recovery and the financial challenges posed by the delays.
How we got here
The 777X program, central to Boeing’s widebody strategy, has faced repeated delays due to certification issues, pushing back deliveries from 2026. These setbacks have resulted in over $15 billion in charges and increased competition from Airbus’s A350. The delays coincide with a broader recovery in international travel demand and Boeing’s efforts to ramp up production of other models like the 737 Max.
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Robert Kelly Ortberg (born April 1960) is an American business executive and the president and CEO of Boeing. He was previously the president and CEO of Rockwell Collins.
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The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide.