Boeing struggles to recover with lowest aircraft deliveries since pandemic

In 2024, Boeing, the aerospace company based in the United States, faced significant challenges that severely impacted its operations and delivery performance. The year began with heightened scrutiny over safety issues, particularly regarding the 737 Max aircraft, which had previously experienced major accidents. An incident in January where a panel fell off a plane shortly after take-off highlighted ongoing quality control problems. This led to an audit by the Federal Aviation Administration, uncovering numerous failures to meet standards by both Boeing and its suppliers. These quality concerns diminished confidence among buyers, affecting new order placements and deliveries. In September 2024, Boeing's production further deteriorated when more than 33,000 members of the International Association of Machinists went on strike, demanding better pay and retirement provisions. This strike, the first major walkout for the company since 2008, halted production at its primary factories, particularly impacting the assembly lines of the 737, 777, and 767 freighter models. Although the strike was resolved in early November, production only began to ramp up again in December, contributing to a drastic fall in year-end delivery numbers. By the close of 2024, Boeing's delivery count stood at just 348 aircraft, marking a decline of 34% compared to the previous year. Despite a decent order book of 142 in December, the overall gross orders for 2024 fell to 569, down 60% from 2023. This trajectory reveals a troubling trend for the company, especially when compared to its European competitor Airbus, which delivered 766 aircraft. The stark contrast underlines Boeing's struggles to regain market strength amid intensifying competition and an enormous backlog of 5,595 unfulfilled orders. Boeing's plight persisted as delays in the delivery of new aircraft, including the 777X, were extended to 2026. Originally anticipated to hit the market in 2020, the 777X was marred by setbacks from quality issues and concerns with its engines. The cumulative effect of these operational challenges has led to billions in losses for the company, complicating matters for airlines relying on Boeing's timely aircraft deliveries. In conclusion, the ongoing difficulties have not only hindered Boeing's recovery but have also had broader implications for its long-term prospects in the competitive aviation market.