Boeing's December Deliveries Fail to Close Growing Gap with Airbus in 2024

Boeing managed to deliver 348 airplanes throughout 2024, marking a significant decrease from its performance in the previous year. This downturn is attributed to persistent challenges, including a crisis triggered by a midair door panel incident and subsequent production interruptions.

This decline has exacerbated Boeing's struggle to keep pace with Airbus, its main competitor. Airbus reported delivering 766 aircraft last year, marking its highest delivery count since 2019. Despite their considerable order backlogs, both companies are contending with manufacturing hurdles that impede their delivery schedules.

Boeing's December Performance Overview

In December, Boeing delivered 30 aircraft as it resumed the production of its popular 737 Max model following the resolution of an almost two-month machinists' strike. For aircraft manufacturers, deliveries are crucial as they align with when the majority of payments are collected.

A shortage in aircraft supply has led to increased leasing costs, with rental rates predicted to break records this year, according to a report from aviation analytics firm IBA.

Boeing reported taking 142 gross orders in December. Notable orders included 100 aircraft for Turkey's Pegasus Airlines and 30 planes for flydubai, which announced their plans during the 2023 Dubai Air Show. The company also removed over 130 aircraft orders initially placed by the now-inoperative Indian airline, Jet Airways.

For the year, Boeing recorded 569 gross orders, translating to 377 net orders after adjustments. By comparison, Airbus finalized 878 gross orders and 826 net orders.

Upcoming Financial and Production Updates

Boeing is set to unveil its fourth-quarter earnings and yearly results on January 28. In this report, corporate leaders, including CEO Kelly Ortberg, will likely address inquiries concerning strategies to enhance production rates and boost profitability in the coming periods.