Boeing has announced delays in the production of its 777X aircraft, pushing the expected delivery date to 2027. This postponement is anticipated to cost the company $5 billion in late delivery penalties. The delays are attributed to various regulatory hurdles that Boeing needs to navigate.
The 777X is being positioned as a modern upgrade to the company’s widely used 747 and 777 models. This announcement arrives amidst a growing demand for international travel, as airlines seek more efficient aircraft. Boeing’s revenue for the third quarter rose by 30% year-over-year, amounting to $23.27 billion.
Boeing’s CEO, Kelly Ortberg, expressed disappointment regarding the 777X schedule delay but noted that the aircraft has performed well in flight testing. He emphasized the company’s commitment to stabilizing operations and improving overall performance in light of recent challenges.
The company has also faced operational issues in recent years, including safety concerns linked to specific aircraft models and labor disputes. In August, over 3,000 workers in two of its defense units participated in strikes over pay and working conditions. This follows a previous strike by approximately 30,000 passenger aircraft workers that lasted seven weeks last year.
Boeing’s latest results indicate that it delivered 55 planes in September, a notable increase compared to the previous year when strikes significantly impacted deliveries. The company projects that the entry into service of the 777X will enhance cash flow, as the delays have thus far led to approximately $15 billion in accrued charges. The new model is claimed to offer improved efficiency, increased revenue potential for airlines, and enhanced reliability, along with better cabin air quality and passenger comfort.
Source: https://www.bbc.com/news/articles/c17pny4vwvyo?at_medium=RSS&at_campaign=rss