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Boeing pushes 777X jet deliveries to 2027 amid certification delays

Boeing Delays 777X Jet Deliveries to 2027 Amid Certification Challenges
Boeing has announced a postponement in the delivery schedule of its next-generation 777X long-haul aircraft, pushing the timeline back to 2027, a full year later than initially anticipated. This delay stems from ongoing certification difficulties rather than new technical problems, according to CEO Kelly Ortberg. The setback has resulted in a $4.9 billion charge for the third quarter, bringing the total costs associated with the 777X program to over $15 billion, thereby intensifying the financial strain on the aerospace manufacturer.
Ortberg emphasized during a recent analyst call that despite the delay, significant progress continues to be made in stabilizing production. He sought to reassure stakeholders that the certification process remains the primary hurdle, rather than emerging technical faults. Nevertheless, the financial repercussions have unsettled investors, with Boeing’s stock experiencing downward pressure amid concerns over the company’s ability to manage prolonged certification challenges and escalating expenses. The substantial quarterly charge highlights the ongoing strain on Boeing’s financial health and raises questions about its long-term profitability and competitive standing.
Operational Performance and Market Implications
Despite the 777X delay, Boeing reported its highest quarterly aircraft deliveries since 2018, delivering 160 planes in the third quarter compared to 116 in the same period last year. The company’s order backlog also expanded, with 5,900 commercial aircraft on order valued at $636 billion. Ortberg pointed to strong demand for Boeing’s products as a positive indicator amid the challenges.
However, the delay in the 777X program presents a strategic opportunity for rival Airbus to consolidate its market position. Airlines facing uncertainty over Boeing’s delivery schedules may increasingly consider alternative aircraft models, potentially shifting market dynamics in Airbus’s favor.
In regulatory developments, Boeing’s relationship with the Federal Aviation Administration (FAA) has shown signs of improvement. In September, the FAA reinstated Boeing’s authority to conduct final safety inspections and certify 737 Max jets, more than six years after two fatal crashes involving the model. The FAA also raised Boeing’s 737 Max production cap from 38 to 42 jets per month, with further increases contingent on demonstrated safety and operational stability. Ortberg noted that any future production increases would be gradual and spaced at intervals of at least six months.
Financial and Labor Challenges
Boeing reported $238 million in free cash flow for the quarter, marking its first positive cash flow since 2023. This figure was partially bolstered by a delayed $700 million payment to the Justice Department, related to a pending settlement over the 737 Max crashes in 2018 and 2019, which were linked to a flawed software system.
Compounding Boeing’s difficulties is an ongoing strike at three Midwest plants in the St. Louis area, where approximately 3,200 machinists have walked off the job amid stalled contract negotiations. Workers have rejected Boeing’s latest offer for the fourth time, citing unresolved concerns over retirement benefits and wage increases.
As Boeing contends with certification delays, financial pressures, and labor unrest, the company faces mounting challenges in restoring operational stability and regaining the confidence of investors and customers alike.

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