Slow Motion in February, but Boeing Projects Faster Pace Ahead

Mar. 14—Boeing had a very slow February with production lagging rival Airbus, though company leaders say the pace will pick up from here.

Facing parts shortages across all jet programs and an enforced halt on the 787 Dreamliner, Boeing delivered just 28 jets in February, including 24 single-aisle 737 MAXs.

Airbus delivered 46 jets in February, including 39 of its competing A320neo jet family plus another three smaller single-aisle A220s.

And though two newly announced giant jet orders are pending, in February Boeing won net new orders for just two airplanes, both MAXs. Airbus won 15 net new orders in February, all for the A320neo family.

Following the settlement of a legal dispute with Qatar Airways, Airbus also reinstated orders for 73 airplanes: 50 single-aisle A321neos and 23 large widebody A350-1000s.

Boeing's delivery total was the lowest since July of last year, before the Federal Aviation Administration cleared Boeing to resume 787 deliveries after a prolonged halt that cost Boeing $6.3 billion due to quality defects at multiple fuselage joins.

And the number of 737 MAXs delivered out of the Renton assembly plant was the lowest since October.

Boeing blames persistent parts shortages on its assembly lines as well as very laborious work to get the inventory of long-parked 737 MAXs and 787s out of storage.

And because of a documentation error, Boeing was forced to temporarily halt 787 deliveries in February.

Better news ahead?

Boeing executives insist the outlook for the rest of the year is better.

Speaking at a Cowen investor conference in mid-February, Boeing Chief Financial Officer Brian West conceded that the month would be slow but said MAX deliveries will accelerate though the year and reach a total of more than 400 airplanes.

Boeing recently reopened the third 737 MAX assembly line in Renton as it prepares to ramp up.

And the temporary 787 delivery pause was lifted Friday when the FAA once again gave Boeing a green light. Deliveries are expected to start again this week.

West predicted that by year end the MAX assembly rate will pick up to 38 jets per month and 787 production will rise to five jets per month. Additional deliveries will come from the inventory of stored MAXs and 787s as those jets are reworked.

Also encouraging, because air traffic worldwide is largely recovered from the pandemic downturn, large airline orders are in the works.

Neither manufacturer has yet finalized the big order deals with Air India announced last month. Those will be added to the official order book when the contracts details are signed.

According to market pricing data from aircraft valuation firm Avitas, the total of 220 Air India jets in Boeing's firm order are worth more than $15 billion after standard discounts.

On Tuesday, Boeing announced another giant order agreement, this time with the government of Saudi Arabia for a total of 78 widebody 787 Dreamliners, with options to purchase 43 more later.

Those jets will be split between two airlines: Saudi Arabia's flag carrier, Saudia, and a planned new airline called Riyadh Air.

Avitas data pegs the value of the total firm orders from the Saudis at more than $11 billion after standard discounts.

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