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Boeing sees 32% fall in deliveries in Q2

Beleaguered airplane manufacturer Boeing recorded a 32% fall in deliveries of its commercial airplanes in the second quarter of the current fiscal year compared to last year.

The fall came on the back of heightened regulatory scrutiny over the company triggered by the episode of a door blowing away mid-flight in January, especially when the company’s planes had already seen two fatal crashes in 2018 and 2019 which killed 346 passengers, and brought it under the scanner of the US Department of Justice. 

What are the numbers?

According to data shared by Boeing on Tuesday, it delivered 92 planes in Q2FY25, compared to 136 planes delivered in the same period last year- a fall of 32.25%.

Year to date, the company’s deliveries fell by 34.21% at 175 planes compared to 266 planes delivered during the same period last year. 

Boeing has not yet released its quarterly financial results and the data may be modified in the final results. 

According to Reuters, the company handed over five 777 freighters, including two of the jets to Air China. Reuters had earlier reported that widebody deliveries to China had resumed after being halted this spring due to a Chinese regulatory review.

The Federal Aviation Administration (FAA) had halted production expansion of the Boeing 737 MAX as a reaction to the door plug blowout incident and allegations that by whistleblowers that the company had taken shortcuts to produce planes more quickly.

To be sure, despite lower deliveries, Boeing still has a delivery backlog of 5,625 planes, as of May 31 this year.

Technical glitches continue, FAA orders inspection of planes

On Monday, the FAA had ordered the inspection of 2,612 of its 737 airplanes stating that there was uncertainty over the functionality of oxygen masks in the planes.

Just a day later, a United Airlines Boeing jet lost a main landing gear wheel while taking off from Los Angeles but later landed safely in Denver.

In a more significant development, Boeing has also agreed to plead guilty to criminal charges emanating from the two fatal crashes and violation of an agreement it entered into with the DoJ in 2021 related to the crashes. Pleading guilty and paying a fine will save Boeing from going to trial.

The post Boeing sees 32% fall in deliveries in Q2 appeared first on Invezz

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