Boeing, one of the leading aircraft manufacturers globally, recently reported a significant downturn in both orders and deliveries for the fourth quarter and the entirety of 2024. The company's fourth-quarter orders plummeted to 254, a steep drop from 608 orders recorded in the same period last year.
This trend continued throughout the year, as Boeing's total orders fell to 569 from a remarkable 1,456 in 2023. In terms of deliveries, Boeing also saw a decline, with only 57 aircraft delivered in the December quarter, compared to 157 delivered a year prior. The annual figure for 2024 deliveries decreased sharply to 348, down from 528 in the previous year.
This adverse shift was particularly pronounced with the 737 jets, which experienced a reduction in fourth-quarter deliveries from 110 to only 36. The total annual deliveries of the 737 models also fell from 396 to 265, highlighting ongoing challenges within the production line. The tumultuous start to 2024 for Boeing was marked by an unfortunate incident involving an Alaska Air 737-9 Max jet, which suffered a mid-flight structural failure.
This event not only raised safety concerns but also led to a temporary grounding of the aircraft model. The US Federal Aviation Administration initiated an investigation into the incident, further complicating Boeing's operational landscape. Despite these setbacks, Boeing made strides in labor relations, successfully reaching a deal with its striking factory workers in November.
Following this agreement, Boeing announced that it had resumed production of the 737 at its Renton, Washington factory, reflecting a commitment to bouncing back from its recent challenges. On the financial side, Boeing's stock experienced a slight drop of 2% during Tuesday afternoon trading, a reflection of the market’s response to the company's ongoing struggles.
However, the company did manage to increase its deliveries in December, achieving a total of 30 aircraft, up from only 13 in November. Additionally, Boeing’s orders during this month increased notably to 142, a rebound from 49 just a month earlier, signaling some recovery amidst adversity. Looking ahead, in a strategic move for long-term growth, Boeing has entered into an agreement to acquire Spirit AeroSystems in a deal valued at approximately $8.3 billion.
This acquisition aims to reverse the split that occurred between the two companies in 2005 and could potentially strengthen Boeing's supply chain and operational capabilities. Investors and analysts alike are eagerly anticipating Boeing's fourth-quarter financial results, set to be reported on January 28, hoping for insights into the company's performance amid these significant challenges and transitions..