Boeing’s 2024 delivery numbers reveal significant challenges ahead for the company and its leadership.
The company’s delivery numbers were released late Tuesday, and they paint a pretty grim picture. Boeing’s deliveries dropped by over a third compared to the previous year, hitting their lowest point since the pandemic began.
Last year was particularly rough for Boeing. They faced issues from a major incident with Alaska Airlines and a seven-week strike that really hurt production.
Most of the planes both companies deliver are short-haul, single-aisle jets. Boeing’s 737 Max has been at the center of its recent troubles, while Airbus has been gaining ground with its long-range A320neo.
After some tragic crashes in 2018 and 2019, the A320neo has become the best-selling narrow-body jet, overtaking the 737 Max. Following an incident with an Alaska Airlines 737 Max last January, the FAA limited Boeing’s production to 38 planes a month, but they’ve struggled to meet even that target while working on improving safety and quality.
Boeing also lagged behind Airbus in orders last year, with 569 compared to Airbus’s 826. They do have a smaller backlog, which could be a silver lining, but it still means they have a lot of work to do to keep airlines happy with timely deliveries.
Many Boeing customers expressed frustration over delays last year, and the company also pushed back the certification of its 777X jet. The entire industry is facing supply-chain issues, which has led Airbus to lower its delivery targets.
Boeing is trying to turn things around. They recently acquired Spirit AeroSystems, a key supplier, which should help streamline production. CEO Kelly Ortberg is also emphasizing the importance of having company leaders on the factory floor to build trust with workers and better understand their challenges.
The latest delivery figures show that Boeing has a long road ahead to catch up with Airbus, but Ortberg has a plan to tackle these challenges head-on.
