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Boeing shares dip on soft April aircraft deliveries

Published 14/05/2024, 19:56
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On Tuesday, Boeing (NYSE:BA) recorded a lower-than-expected number of aircraft deliveries for April, with analysts from TD Cowen attributing the soft performance to ongoing production adjustments and efforts to eliminate traveled work at Spirit AeroSystems (NYSE:SPR). The aerospace company delivered 24 aircraft, marking a two-year low that included 16 of its 737 MAX jets. This figure fell short of the analysts' projections and also reflected a decline from the previous month's deliveries.

Boeing's April deliveries included 16 737 MAX aircraft, a decrease from the 24 delivered in March, 18 in February, and 25 in January. The company also delivered 2 units of the 767, 2 of the 777, and 4 of the 787 model. The delivery constraints were influenced by reduced MAX production, which was estimated to be below 15 aircraft for the month, in response to production changes mandated by the Federal Aviation Administration (FAA) and a production line reset at SPR.

In contrast, Airbus outpaced Boeing with 61 aircraft deliveries in April, a slight reduction from the 63 delivered in March but an increase from the 54 delivered in April of the previous year. The European manufacturer's April deliveries consisted of 3 A220s, 51 A320 Family aircraft, 1 A330, and 6 A350s.

Boeing's order book for April also appeared lackluster, with the company securing just 2 net adjusted orders compared to Airbus' 52. The figures implied a cancellation of 33 aircraft for Boeing during the month. The delivery and order performance of Boeing in April is in line with the expectations set by CFO Brian West during the first-quarter earnings call, where he indicated that April's 737 deliveries would align more closely with February's numbers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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