Boeing (BA.N) announced on Wednesday that the first delivery of its long-delayed 777X jet has been pushed to 2027, Reuters reports, and the company recorded a nearly $5 billion charge related to the delays. The move adds to years of setbacks for the aerospace giant, including quality issues and production delays on its 737 MAX program.
The 777X, originally slated for delivery in 2020, has now been delayed multiple times since the program’s launch in 2013. CEO Kelly Ortberg said the company remains behind schedule in certifying the aircraft but noted no new technical problems have been identified. Boeing has taken about $15 billion in charges tied to the 777X program to date, including penalties owed to customers for late deliveries. Shares fell 1% in premarket trading following the announcement.
Despite these challenges, Boeing has made progress on the 737 MAX. The company recently received FAA approval to increase production to 42 jets per month, up from the 38-plane cap imposed after a mid-air panel blowout in January 2024. September deliveries hit 55 jets, the strongest performance for the month since 2018, aided by the resolution of a strike by 33,000 factory workers in the Pacific Northwest.
For the quarter through September, Boeing posted a net loss of $5.34 billion, or $7.14 per share, versus a loss of $6.17 billion, or $9.97 per share, a year earlier. Revenue rose 30% to $23.27 billion, surpassing Wall Street expectations of $21.97 billion. Free cash flow turned positive at $238 million, marking the first quarterly gain since 2023.
The 777X delays highlight ongoing operational challenges for Boeing, highlighting the financial and production pressures on the company even as it ramps up 737 MAX output and navigates a competitive aerospace market.
