Boeing has delivered its fewest aircraft since November 2020, with only 14 jetliners handed over in October.
The drop in deliveries follows a lengthy seven-week strike involving more than 32,000 machinists.
Although the strike officially ended with a new contract approval, Boeing warns that it will take weeks to fully restart factory operations.
Machinists Return After Approving New Contract
The strike began on September 13 after union machinists rejected a proposal offering a 25 percent pay increase.
The dispute ended last week when workers approved a new contract that includes:
- A 38 percent increase in wages over four years.
- Additional improvements in working conditions and benefits.
Despite the new agreement, Boeing’s CEO Kelly Ortberg emphasized the challenges ahead. He said:
“It’s much harder to turn this on than it is to turn it off. So it’s absolutely critical that we do this right.”
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Production Restart to Be Gradual
With machinists required to return to their posts by Tuesday, Boeing faces a complex process to restart its factories. The company needs to evaluate potential risks after the prolonged work stoppage.
It also must ensure all machinists are up-to-date with safety protocols and training requirements.
Boeing is resuming production for key aircraft models, including the 737 Max, 767, and 777, at its Washington and Oregon facilities.
Notably, production of the 787 Dreamliner continued during the strike since it is manufactured at a nonunion factory in South Carolina.
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Falling Behind Airbus in Aircraft Deliveries
The prolonged strike has exacerbated Boeing’s struggles, putting it further behind European rival Airbus. As of October:
- Boeing Deliveries: 305 airplanes year-to-date.
- Airbus Deliveries: 559 airplanes year-to-date.
The gap underscores Boeing’s ongoing challenges in keeping pace with its competitors, as production delays and supply chain issues continue to affect output.
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Sales Continue Despite Production Halts
Despite the production pause, Boeing maintained a strong sales pipeline in October, securing 63 gross orders—nearly matching September’s total of 65. Key highlights include:
- 737 Max Orders: Forty 737 Max 8 orders from Avia Solutions Group.
- 787 Dreamliner Deliveries: Ten 787 Dreamliners delivered to LATAM Airlines.
While Boeing’s ability to secure orders remains strong, the delays in production and deliveries could affect customer satisfaction and future sales prospects.
Navigating a Complex Restart
As Boeing works to bring its operations back online, the focus will be on carefully managing the restart process to avoid further disruptions. Key challenges ahead include:
- Ensuring Worker Safety: Addressing potential hazards and confirming all safety protocols are met before ramping up production.
- Minimizing Delays: Balancing the need for a cautious restart with the urgency to fulfill backlogged orders and close the delivery gap with Airbus.
- Restoring Confidence: Rebuilding trust with customers and stakeholders after the disruption caused by the strike.
Boeing’s ability to navigate these obstacles will be crucial as it seeks to regain its footing in a highly competitive aerospace market.
With production resuming and a strong order book, the company hopes to make up lost ground and stabilize its operations in the coming months.
