Boeing Cuts Outlook for 737 Max Deliveries Because of Fuselage Issue

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published October 25, 2023
Boeing 737 Max

GEOFFROY VAN DER HASSELT / Contributor / Getty Images

Key Takeaways

  • Boeing lowered its estimate for 737 Max deliveries this year because of inspections for a potential fuselage problem.
  • The issue reduced deliveries in the third quarter, leading to a bigger-than-expected loss.
  • CEO Dave Calhoun told employees Boeing has identified problems from the past that will now be addressed "once and for all."

Boeing (BA) announced that it would be delivering fewer of its popular 737 Max passenger planes this year because of a problem caused by one of its suppliers.

The company now anticipates 375 to 400 of its 737 Max jets will be delivered in 2023, down from its previous estimate of 400 to 450, because of delays caused by inspections and any needed repairs to their fuselages. In August, Boeing and Spirit AeroSystems (SPR) indicated that there was a potential problem with holes drilled in some of the aft pressure bulkheads built by Spirit AeroSystems, leading to the inspections.

Boeing explained that the reduction in deliveries caused by the 737 issue along with an “unfavorable performance” in its Defense, Space and Security division led to a third quarter fiscal 2023 loss of $3.26 per share, bigger than anticipated. Revenue rose 13% from a year ago to $18.1 billion, exceeding forecasts.

CEO Dave Calhoun said the plane maker continued to progress in its recovery, and “despite near-term challenges,” remains on track to meet its financial goals. He added Boeing was focused on stabilizing its supply chain and improving operational performance as it ramps up production to meet the strong demand for aircraft following the COVID-19 pandemic slump.

In a letter to employees, Calhoun noted that the company has “identified non-conformances from the past that we now have the rigor to find and fix once and for all.”

Shares of Boeing lost over 2% on Wednesday to trade at their lowest level since last December. Spirit AeroSystems shares also declined.

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  1. Boeing. "Boeing Reports Third Quarter Results."

  2. Spirit AeroSystems. "Spirit AeroSystems 737 Aft Bulkhead Statement."

  3. Boeing. "Boeing CEO Updates Employees on Third-Quarter Results."

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