Boeing's 737 Deliveries Poised to Reach Q1 2023 Levels, 787s Lag Behind – BofA
By Investing.com
June 2023 – Boeing's 737 aircraft deliveries are set to see a significant rise, potentially matching the levels observed in the first quarter of 2023, according to analysts from Bank of America. However, Boeing's 787 aircraft are expected to experience delays due to a newly discovered issue with the aircraft.
Key Highlights:
- Boeing's 737 Deliveries Increase in June: According to Aero Analysis Partners/AIR (AAP/AIR), Boeing has delivered twelve 737s by mid-June, which is an improvement from the nine aircraft delivered during the same period last month. Production has also increased with thirteen rollouts as of June 13th, and a 5% rise in flight activities compared to last year.
- Forecast for 737 Deliveries in June: AAP/AIR forecasts that Boeing's 737 deliveries will range between 25-28 aircraft in June, exceeding the 19 737s delivered in May. If these numbers hold true, Q2 deliveries will approach the 66 MAXs delivered in Q1 2023.
- Overall 2023 and FY24 Production Outlook: Despite this end-of-quarter surge, AAP/AIR anticipates that the total FY24 output will fall below 300 units, with deliveries ranging between 300-330 aircraft.
787 Aircraft Issues:
- Newly Discovered Problem: Boeing has recently discovered an issue involving the incorrect torque of over 900 fasteners per 787 aircraft. This has led to delays and rework.
- Expected Rework Timeline: According to AAP/AIR data, the rework is expected to take 5-9 days per plane. Currently, four 787 aircraft, rolled out before June 2020, are under repair. It remains unclear if this issue only affects planes built before 2020 and who is responsible for the installation—Boeing or Leonardo.
- Impact on 787 Deliveries: Given this new development, AAP/AIR anticipates that 787 deliveries will remain slow in the coming months.
Bank of America's Rating:
Bank of America has maintained a neutral rating on Boeing with a price objective of 200. This outlook considers both the improving situation with the 737 deliveries and the delays and challenges facing the 787 models.
Summary: While Boeing's 737 deliveries are on the rise, exceeding the previous months' numbers and approaching Q1 2023 levels, the discovery of a problem with the 787 aircraft has caused delays in their delivery. Analysts are keeping a close watch on both the progress and the setbacks as they assess Boeing's overall performance.
