Boeing deliveries fall to lowest level in five months in July

A Boeing 737 Max is displayed during the Farnborough Airshow, in Farnborough on July 18, 2022. (Photo by JUSTIN TALLIS / AFP) (Photo by JUSTIN TALLIS/AFP via Getty Images)

Justin Tallis | AFP | Getty Images

Boeing jetliner deliveries fell to a five-month low of 26 planes in July, underscoring pressure on global supply chains as it prepares to resume deliveries of the 787 Dreamliner.

The US aircraft maker said monthly deliveries included 23,737 Max jets and three jumbo jets, bringing Max deliveries so far this year to 212 jets and total deliveries to 242.

The figures do not include the imminent resumption of 787 Dreamliner deliveries after a year-long suspension due to production issues.

The U.S. government on Monday approved the first 787 delivery since May 2021, people briefed on the matter said.

Boeing’s July data, however, highlights industrial issues that are testing the aerospace industry after Airbus on Monday reported lower July deliveries.

With about half of the 51 transfers seen the previous month, Boeing’s July deliveries suffered the largest sequential decline since before the 737 Max was cleared to return to service in December 2020, following a grounding of security.

Deliveries have nevertheless fluctuated a lot this year and the month of June had seen a strong upward movement.

Chief Financial Officer Brian West anticipated a “light” July when he raised three concerns for the 737 during last week’s results: supply chains, delays in removing planes from storage and an effective freeze on deliveries to China.

He told analysts that Boeing would not fully compensate for lower-than-expected first-half deliveries in the second half and added, “We will continue to experience month-to-month variability.”

New orders

Boeing, meanwhile, saw a surge in new business in July as it officially took announced orders at the Farnborough Airshow, where it focused on beefing up the 737 Max 10, as the plane faces uncertainty about a certification deadline.

Boeing has confirmed orders for a total of 125 Max from Delta Air Lines and Qatar Airways as well as two 777 freighters for Air Canada. It added new orders for two American Airlines Max’s and a FedEx 777 freighter.

That brings Boeing’s gross orders to 130 planes for July and 416 for the year so far.

After canceling four planes in July, Boeing recorded base net orders of 126 planes in July and 312 for the year to date.

Airbus had previously announced comparable net orders since the start of the year of 656 planes after a major agreement with China.

After further accounting adjustments, Boeing said it has reached adjusted net orders of 362 planes so far this year.

The adjustments reflect a more positive view of some ongoing contracts as travel demand returns.

Boeing restored a net total of 31 planes to its normal operational backlog in July after they were previously shelved in a category reserved for jets unlikely to be delivered.

Airbus makes similar quality adjustments to its order book annually rather than monthly, and records them in terms of value rather than volume, so a comparison is not available.

Boeing has sold a total of 5,206 jets that are still awaiting delivery in the coming years, or 4,370 after including accounting adjustments for planes unlikely to be delivered.

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