Boeing 737 MAX aircraft are pictured outside a Boeing factory in Renton, Washington on March 25, 2024.
Stephen Brashear | Getty Images
Boeing Plane deliveries fell to their lowest level since mid-2021 in the first quarter as the company faced increased scrutiny after a door plug popped out in mid-air on one of its 737 Max 9 planes in January.
The company delivered 83 aircraft, most of them 737s, in the three months ended March 31, compared with 157 in the previous quarter and 130 aircraft in the same period last year. In March alone, Boeing delivered 29 aircraft. Airbus said on Tuesday that it had delivered 142 aircraft in the first three months of the year, including 63 in March.
Boeing customers are still ordering new jets from the manufacturer, which, along with Airbus, dominates the market for large aircraft. The company recorded orders for 111 new aircraft last month, excluding two cancellations, including 85 for 737 Max aircraft American Airlineswhich the carrier announced at the beginning of March.
The latest reckoning comes after the Jan. 5 accident involving Alaska Airlines Flight 1282 left Boeing inches from disaster. Federal accident investigators said the door stopper was missing screws holding it in place. Since the accident, the Federal Aviation Administration has inspected Boeing’s 737 Max production and banned the plane maker from increasing production of the jets until it signs off on its quality control procedures.
Boeing executives said the company was slowing production to improve quality control and avoid so-called “traveled work,” which involves repairs or other tasks occurring out of sequence.
“We’re not going to rush or move too quickly,” Boeing CFO Brian West said at a Bank of America conference last month. “In fact, we will intentionally slow down to get this right. And we have made the decision to cap the fares for the 737 program below 38 per month until we feel we are ready. And we will feel the impact that will have in the next few months.”
Delays in aircraft deliveries sparked criticism from the CEOs of some of Boeing’s largest airline customers, and as a result, CEO Dave Calhoun announced last month that he would step down at the end of the year. Boeing also replaced its chief executive and the head of its commercial aircraft division.
Alaska Airlines said last week that it received $160 million in compensation from Boeing in the first quarter, resulting from a brief grounding of the plane following the accident.
Boeing is scheduled to report first-quarter results on April 24 and will keep investors updated.
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2024-04-09 17:21:00
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