Boeing's production gains lifts stock amid ongoing strike challenges

In the United States, Boeing is experiencing significant production gains despite a labor strike affecting its defense unit. As of the beginning of August 2025, Boeing's stock has increased by 37% since January, demonstrating strong market confidence in the company's trajectory. In July, Boeing delivered 37 737MAX aircraft, approaching its mandated production cap of 38 aircraft per month, which was introduced by the Federal Aviation Administration (FAA) due to safety and quality concerns. This follows an average production of 35 units a month for the previous three months leading up to July. During the first half of August, Boeing managed to deliver 17 aircraft, including three to Chinese airlines: China Southern, China Eastern, and Shanghai Airlines. Despite ongoing tariff issues, including a 10% reciprocal tariff that remains in effect during a temporary suspension of bans on aircraft deliveries to China, Boeing remains optimistic about its prospects in this critical market. A notable aspect is that 10% of Boeing's backlog is set to serve Chinese airline customers, underlining the importance of these relationships for future growth and stability. As a result, the overall backlog at the end of July stood at 6,572 aircraft, indicating a robust demand for Boeing products. Another key development occurred with the 777X program, as the fifth 777-9 aircraft completed its maiden flight. However, this program is facing delays, being approximately six years behind schedule with an outstanding backlog of 551 aircraft to fulfill. The progress in this program adds pressure but also potential for future revenue, showing that while production is currently strong, the company is working to catch up on previously pledged deliveries. Compounding these operational achievements, Boeing is facing a strike that has not seen immediate resolution despite a two-week cooling-off period. Workers began striking in early August 2025, with union leader Bryan Bryant calling for negotiations to continue. Boeing has rescinded a $5,000 bonus offer during this impasse, further complicating relations with its workforce. However, the company has a history of overcoming labor challenges, having dispatched a longer strike in November of the previous year. This ongoing strike reflects significant labor issues that could impact future productivity and company morale.