Boeing's troubled 777X jet program has taken another hit, with the company reporting a nearly $5 billion charge due to delays in delivering the aircraft. This is on top of more than $15 billion in charges already taken by Boeing related to the program.
The latest delay pushes back the first delivery of the 777X, which was originally slated for 2026, and further strains Boeing's finances. The company has been struggling with production delays and quality issues since the launch of its 737 MAX program, but a growing demand for international travel has created an opportunity for rival Airbus to gain ground.
"The challenge is getting to be more about people losing patience and demanding compensation," said Richard Aboulafia, managing director of AeroDynamic Advisory. "Now it might be getting to a point where the stakes are higher."
Boeing's shares fell 1% in premarket trading after the announcement. The charge includes penalties owed to customers for late deliveries, as well as longer production costs.
The delay comes at a time when demand is growing for international travel, driven by rising air traffic and increasing global connectivity. This growth has created an opportunity for Boeing to rebound from its current setbacks and regain its footing in the competitive market.
However, with over $15 billion already accounted for in charges related to the 777X program, it remains to be seen whether Boeing's financial situation can withstand further delays or setbacks. The company's debt levels have been a concern, and any additional hits to profitability could exacerbate the issue.
Despite this, Boeing has shown signs of improvement in recent quarters. Deliveries of its 737 MAX aircraft have increased significantly, with 55 jets handed over in September - its strongest performance for that month since 2018. The company also reported a free cash flow of $238 million, turning positive for the first time since 2023.
However, investors will be watching closely to see how Boeing responds to this latest delay and whether it can meet its delivery targets going forward. With demand for international travel expected to continue growing, there is still an opportunity for Boeing to regain its position in the market - but it will require swift action and a commitment to getting back on track.
The latest delay pushes back the first delivery of the 777X, which was originally slated for 2026, and further strains Boeing's finances. The company has been struggling with production delays and quality issues since the launch of its 737 MAX program, but a growing demand for international travel has created an opportunity for rival Airbus to gain ground.
"The challenge is getting to be more about people losing patience and demanding compensation," said Richard Aboulafia, managing director of AeroDynamic Advisory. "Now it might be getting to a point where the stakes are higher."
Boeing's shares fell 1% in premarket trading after the announcement. The charge includes penalties owed to customers for late deliveries, as well as longer production costs.
The delay comes at a time when demand is growing for international travel, driven by rising air traffic and increasing global connectivity. This growth has created an opportunity for Boeing to rebound from its current setbacks and regain its footing in the competitive market.
However, with over $15 billion already accounted for in charges related to the 777X program, it remains to be seen whether Boeing's financial situation can withstand further delays or setbacks. The company's debt levels have been a concern, and any additional hits to profitability could exacerbate the issue.
Despite this, Boeing has shown signs of improvement in recent quarters. Deliveries of its 737 MAX aircraft have increased significantly, with 55 jets handed over in September - its strongest performance for that month since 2018. The company also reported a free cash flow of $238 million, turning positive for the first time since 2023.
However, investors will be watching closely to see how Boeing responds to this latest delay and whether it can meet its delivery targets going forward. With demand for international travel expected to continue growing, there is still an opportunity for Boeing to regain its position in the market - but it will require swift action and a commitment to getting back on track.
they was supposed to deliver that 777X jet years ago! now they gotta pay like 5 billion dollars for delays lol, thats crazy 
its not just the money tho, its about the reputation too, ppl r gonna start losing patience and demanding more, maybe even refusing to buy their jets anymore 
Boeing's troubles are starting to sound like a never-ending saga... they can't seem to get their 777X program off the ground 
. I mean, $20 billion in charges already? That's a whole lotta cash 
. But nope, they're still struggling to deliver (pun intended) 
. I've gotta wonder, what's going on behind the scenes? Are there too many delays in production? Is it quality control issues? Or is it just a case of poor planning and execution? Whatever it is, Boeing needs to get its act together ASAP 
or risk getting left behind by Airbus 
.
That $5 billion charge is wild! They're basically giving it away just to keep customers happy. 
. They're already struggling with production delays and quality issues, now they've got a nearly $5 billion hit for late deliveries... that's just money laundering for delayed planes 
.
. They need to get this plane out the door ASAP or Airbus might just swoop in and steal the market 
️. But, they're showing signs of life with the 737 MAX deliveries - fingers crossed they can turn it around 
!
. The delays just keep piling up and now they're facing a nearly $5 billion charge... that's like, a whole lotta cash 
, which could be like, a double-edged sword. On one hand, it's a chance for Boeing to bounce back and regain their footing in the market 
. On the other hand, if they can't deliver on time, it'll just be another notch in that "delay" belt 
.
. Fingers crossed they can get the 777X back on track and make it happen 
. And don't even get me started on the production delays and quality issues... it's a mess 
.
It's not like it's rocket science (although, technically, a Boeing 777X is pretty complex 
. The stakes are high and it's not just about people losing patience anymore 
I'm telling ya, this is gonna be a disaster for Boeing if they can't get their act together! $20+ billion in charges already and they're still struggling? It's like they're playing catch-up with Airbus, who's already raking it in with those fancy new aircraft. The 777X was supposed to be the game-changer for Boeing, but now it just looks like a money pit 
. i mean, can't they just get their act together and deliver these planes on time for once? 
gotta get their act together ASAP or risk losin even more money