Overview of Boeing’s Operational Challenges in November 2024
In November 2024, Boeing faced significant operational disruptions due to a prolonged industrial strike that began in early October. The strike, primarily fueled by disputes over pay scales and potential job cuts, saw approximately 33,000 Boeing workers ceasing work. This industrial action significantly impacted Boeing’s aircraft production and delivery capabilities. During this tumultuous period, Boeing delivered a mere 13 commercial aircraft, a stark contrast to the 56 aircraft delivered in the same month the previous year. The strike concluded on November 5, 2024, following a renegotiated pay agreement between Boeing and the unions.
Impact on Aircraft Deliveries and Production
The strike led to a halt in production across Boeing’s major production lines, including the 737 MAX, 767, 777, and 777X models. Notably, in November, Boeing managed to deliver nine 737s, two 777 freighters, and two 787-9s. Among these, United Airlines received two 737 MAX jets and one 787. The reduced delivery volume reflects the operational setbacks caused by the strike, compounded by ongoing regulatory limitations imposed on the 737 MAX production rates after safety concerns were raised earlier in the year.
Resumption of Production and Future Plans
Post-strike, Boeing announced a gradual resumption of production. The company emphasized a cautious approach to restarting production, prioritizing quality, safety, and worker training. This strategy aims to rebuild trust and ensure the integrity of its aircraft following past safety issues. Boeing’s social media updates expressed gratitude towards the workforce for their dedication to resuming production, particularly of the single-aisle 737 MAX jets. The company also outlined plans to restart production of the 767, 777, and 777X models in Everett and the continuation of the 787 production in Charleston, unaffected by the strike.
Market Response and Orders in November 2024
The resumption of production and the settlement of the strike led to a positive response from the market, with Boeing’s shares rising by 4.5%. In terms of sales, Boeing secured 49 gross orders during the month, including substantial orders for 34 737 MAX jets. However, the month also saw 14 cancellations, notably from the European airline group TUI, which opted to lease aircraft from BOC Aviation instead. Despite these challenges, Boeing has accumulated 427 gross orders in 2024, amounting to 370 net orders after adjustments for cancellations and conversions.