In 2024, Boeing delivered a total of 348 airplanes, which is approximately one-third fewer than the previous year. This decline is attributed to several significant challenges faced by the aerospace giant, including a crisis stemming from a midair door panel blowout last year and a machinist strike in the fall that temporarily halted production.
This situation exemplifies just one of the numerous hurdles Boeing has encountered, which has resulted in losses exceeding $23 billion since 2019. Consequently, Boeing has fallen behind its competitor, Airbus, in terms of both selling and delivering new aircraft.
The delivery figures have further widened the gap with Airbus, which managed to deliver 766 jetliners to customers last year—marking its highest total since 2019. Both companies are currently grappling with supply chain strains that have hindered production and the fulfillment of their otherwise robust order backlogs.
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December deliveries and market implications
In December, Boeing successfully delivered 30 airplanes, marking the restart of its production for the bestselling 737 Max models following the nearly eight-week machinist strike that concluded the month prior. Deliveries are a critical milestone for manufacturers, as this is when customers typically pay a significant portion of the aircraft’s cost.
A shortage of available aircraft from suppliers has resulted in rising lease rates, with aviation data firm IBA projecting that rentals will reach record levels this year. In December, Boeing recorded 142 gross orders for new planes, including 100 737 Maxes for Turkey’s Pegasus Airlines and 30 787s for flydubai, which were initially announced at the Dubai Air Show in late 2023. Additionally, Boeing removed over 130 orders from its books for India’s now-defunct Jet Airways.
For the year, Boeing’s gross orders totaled 569, resulting in 377 net orders—with 317 of these orders including accounting adjustments. In contrast, Airbus reported 878 gross orders and 826 net orders.
Financial outlook and investor scrutiny
Boeing is set to report its fourth-quarter and full-year financial results before the market opens on January 28. During this time, CEO Kelly Ortberg and other leaders will address investor inquiries concerning plans to increase production and restore the aerospace giant’s profitability.
As of now, Boeing has released its delivery statistics for the fourth quarter of 2024, offering insight into its recent performance ahead of the detailed financial outcomes. In the fourth quarter, the company delivered a total of 57 commercial airplanes, contributing to an annual total of 348 aircraft across various models, while navigating a challenging market environment with gross profit margins of just 3.62 percent.
Read more: Door incident prompts expanded inspection of Boeing 737 MAX 9 aircraft
Breakdown of deliveries
The 737 model dominated the commercial airplane deliveries with 36 units in the fourth quarter, culminating in a yearly total of 265 deliveries. The 787 Dreamliner followed with 15 deliveries in the last quarter, amounting to 51 for the year. The 767 and 777 models saw less activity, each with 3 deliveries in the fourth quarter, leading to annual totals of 18 and 14, respectively.
In the defense sector, Boeing’s performance in the fourth quarter included a range of aircraft and equipment deliveries. This encompassed 6 new AH-64 Apache helicopters alongside 10 remanufactured units. The CH-47 Chinook saw 2 new and 2 renewed deliveries, while the F-15 and F/A-18 fighter models contributed 4 and 6 to the quarter’s totals, respectively. The KC-46 Tanker delivered 10 units for the year, along with 6 MH-139 units and 4 P-8 models. The T-7A had 1 unit delivered in the fourth quarter, culminating in a total of 2 for the year. Furthermore, Boeing delivered 2 commercial and civil satellites in the fourth quarter, which also summed to the annual total.
Future uncertainties and legal challenges
The release of these figures serves as a quantitative measure of Boeing’s output, although a more comprehensive context will be provided with the forthcoming financial results. With annual revenue reported at $73.29 billion and a market capitalization of $125.14 billion, Boeing is confronted with significant challenges ahead.
In other developments, potential trade tariffs proposed by U.S. President-elect Donald Trump could jeopardize Boeing’s cash flow, as noted by AerCap CEO Aengus Kelly. Concerns are particularly pronounced regarding supply chain disruptions for the 737 MAX 7, 737 MAX 10, and the long-delayed 777X. Meanwhile, Barclays has upgraded Boeing stock from Equalweight to Overweight, highlighting positive expectations for production and deliveries through 2025, despite the company’s substantial total debt of $57.65 billion and negative free cash flow.
Legal rulings and accountability
Recently, a U.S. federal judge rejected a plea deal that would have allowed Boeing to plead guilty to a felony conspiracy charge and pay a fine for misleading U.S. regulators regarding the 737 Max jetliner prior to two fatal crashes that resulted in 346 deaths. U.S. District Judge Reed O’Connor expressed concerns that diversity, inclusion, and equity (DEI) policies in the government and at Boeing could influence the selection of an official to oversee compliance with the agreement.
The agreement was formed after Boeing pleaded guilty to fraud for failing to adequately disclose information about the Maneuvering Characteristics Augmentation System (MCAS), the software linked to the two crashes. Boeing had agreed to pay a 244 million dollar fine and undergo a three-year probation period with an independent monitor overseeing its compliance with anti-fraud measures. However, Judge O’Connor contended that the agreement did not guarantee sufficient oversight and criticized the diversity provisions related to the monitor’s selection.
What lies ahead for Boeing?
With the recent rejection of the plea agreement, Boeing and the Department of Justice are required to renegotiate the terms of a new deal. The future of the company remains fraught with uncertainties. The review of the agreement could lead to new sanctions against Boeing, which would exacerbate its financial and reputational issues, according to industry experts. Families of the victims continue to advocate for genuine justice beyond what they view as a lenient agreement.
Attorney Paul Cassell, representing some victim families, regards the ruling as a significant victory that allows families to voice their concerns during the negotiation process. He stated, “This ruling shows that agreements between the government and Boeing should not be approved without thorough review. The judge points out that concerns about Boeing’s accountability and future safety cannot be overlooked.”
Boeing’s forthcoming actions will not only involve renegotiating an agreement with the Department of Justice but may also lead to a public trial if a satisfactory resolution is not achieved. According to analysts, the uncertainty surrounding Boeing is particularly damaging in a year already marred by financial and organizational challenges, including internal restructuring and significant layoffs. For the families of the victims, the pursuit of answers and justice for those who lost their lives in the 737 MAX crashes remains a top priority, underscoring the necessity for effective oversight to prevent any recurrence of such tragedies.
