Boeing Stock Trading Lower After Q4 Delivery Numbers

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Boeing Stock Trading Lower After Q4 Delivery Numbers

Boeing Co's stock is experiencing a downturn following the release of its fourth-quarter delivery numbers, which revealed a notable decrease in commercial airplane deliveries. The company disclosed that it delivered 57 commercial planes in the quarter, a sharp drop from the 157 delivered in the year-ago quarter. The decline in deliveries is primarily linked to production stoppages and regulatory restrictions imposed on Boeing's 737 MAX production.

Based in Arlington County, Virginia, Boeing saw a significant decrease in commercial plane deliveries with only 13 planes delivered in November 2024, down from 56 in the previous year, and 14 in October 2024 due to production interruptions. The Federal Aviation Administration (FAA) intervened in January 2024 by limiting Boeing's 737 MAX production to 38 planes monthly following safety concerns raised after an incident involving an Alaska Airlines 737 MAX 9. Despite these challenges, Boeing managed to surpass delivery estimates for 2024, with a total of 348 annual deliveries exceeding both RBC and consensus forecasts. The company also reported 36 defense, space, and security deliveries for the quarter and 112 for the year.

Boeing's stock has faced a considerable decline, plummeting over 17% in the last year and 49% over the past five years due to a series of setbacks including safety issues, the ongoing pandemic, leadership changes, and more. The company's problems escalated in 2018 with a fatal crash involving a Boeing aircraft off the coast of Indonesia. Additionally, a door panel incident on an Alaska Airlines plane in January 2024 led to the FAA's decision to cap Boeing's 737 MAX production. These challenges were further compounded by the impact of the global pandemic on the aviation industry. Seeking to address these issues, Boeing appointed Kelly Ortberg as CEO in July, succeeding Dave Calhoun, amidst a turbulent period marked by accidents, legal disputes, and internal turmoil. Moreover, the company also had to navigate a seven-week strike in December, impacting its cash flow and disrupting the production of key aircraft models.