Supply chain issues effect Boeing’s July aircraft deliveries

In July, Boeing’s aircraft deliveries lagged behind those of its European competitor Airbus. The ongoing challenges within Boeing’s supply chain and logistical operations, can be attributed for the same, impacting its popular 737 narrowbody jet.

According to a recent statement by Boeing, they successfully delivered 43 aircraft in July, a decrease from the 60 planes they delivered in June. In contrast, Airbus delivered 65 jets in the same month, outperformed Boeing by more than 20 aircraft.

The deliveries of Boeing’s narrowbody 737 MAX aircraft specifically experienced a decline from 48 in June to 32 in July. This drop marked the lowest delivery level since April. During that time, Boeing had identified incorrect installations of brackets on the vertical tail of approximately 75 percent of their 737s in stock.

Boeing CEO Dave Calhoun said in July that ongoing rework to fix the bracket defect, a work stoppage at supplier Spirit AeroSystems, and a bridge collapse impacting railway deliveries of the 737 fuselage could “cost us a few deliveries” in the third quarter.

While Boeing last month announced that it had begun ramping up 737 production from 31 jets to 38 jets per month, the Chief Financial Officer Brian West said it would take time to consistently deliver at that level.

In addition to the MAXs, Boeing in July delivered four 787 Dreamliners, three 767s, three 777 freighters and one Next-Generation 737 to be converted into a P-8 maritime patrol aircraft for the US Navy.

The company booked 52 gross orders over the month, including a previously announced sale of 39 Dreamliners to Saudia, with no cancellations. Airbus booked 60 gross orders in July.

Since the beginning of January, Boeing’s gross orders rose to 579 in July, or 467 net orders after factoring cancellations and conversions and 659 net orders after accounting adjustments.

Overall, the Boeing’s commercial backlog increased from 4,879 to 4,928.

Rival Airbus booked 1,140 gross orders, or 1,101 after cancellations, through the end of July.

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