Boeing's quarterly airplane deliveries drop to 83 amid safety crisis

Source: CNBC

AEROSPACE & DEFENSE
Boeing’s quarterly airplane deliveries drop to 83 amid safety crisis

PUBLISHED TUE, APR 9 2024 11:00 AM EDT UPDATED 50 MIN AGO

Leslie Josephs
@LESLIEJOSEPHS https://twitter.com/lesliejosephs

KEY POINTS
*Boeing airplane deliveries dipped in the first quarter as the company faces increased scrutiny.
* The manufacturer delivered 29 planes in March, most of them 737s.
* Boeing’s major airline customers have complained that delivery delays have forced them to rethink their growth plans.

Boeing airplane deliveries dropped in the first quarter to the lowest number since mid-2021 as the company faces increased scrutiny after a door plug blew out from one of its 737 Max 9 planes midair in January. ... The company handed over 83 planes in the three months ended March 31, most of them 737s, compared with 157 in the prior quarter and 130 planes in the year-earlier period. Solely in March, Boeing delivered 29 planes.

Boeing customers are still ordering new jets from the manufacturer, which along with Airbus dominates the large jetliner market. The company logged orders for 111 for new planes last month when stripping out two cancellations, 85 of them 737 Max aircraft for American Airlines, which the carrier announced in early March.

The latest tally comes after the Jan. 5 accident on Alaska Airlines Flight 1282 brought Boeing inches from a catastrophe. Federal accident investigators said the door plug was missing bolts that hold it in place. Since the accident, the Federal Aviation Administration has inspected Boeing’s 737 Max production and barred the plane maker from increasing output of the jets until it signs off on its quality control procedures.

Boeing executives have said the company is slowing down its production to improve quality control and avoid so-called traveled work, when repairs or other tasks occur out of sequence. ... “We won’t rush or go too fast,” Boeing CFO Brian West said at a Bank of America conference last month. “In fact, we’re deliberately going to slow to get this right. And we are the ones who made the decision to constrain rates on the 737 program below 38 per month until we feel like we’re ready. And we’ll feel the impact of that over the next several months.”

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Read more: https://www.cnbc.com/2024/04/09/boeing-airplane-deliveries-drop-during-q1-amid-safety-crisis.html