Boeing Faces Extended Production Delays Following Strike

Work Stoppage Disrupts Manufacturing Schedules and Creates Backlog
Boeing is warning that it will take several weeks to fully resume production of its passenger aircraft after the conclusion of a two-month strike by 33,000 machinists. The workers, who are members of the International Association of Machinists and Aerospace Workers (IAM), returned to their jobs after ratifying a new contract that includes a 38% pay increase over four years. However, despite their return, Boeing’s production lines in Washington state and Oregon will require time to restart operations, as the company works through multiple steps to resume full-scale manufacturing.

Ongoing Delays Fuel Airline Frustration
Airline Customers Express Growing Concerns Over Late Deliveries
The strike and subsequent delays have added to the growing frustration among airline customers, who were already facing significant delays in receiving new aircraft before the work stoppage. Ryanair, which was initially expecting to receive its first 737 Max 10s by 2026, now projects deliveries will be pushed to the first half of 2027. American Airlines, which had planned to receive the 737 Max 9, has yet to predict a delivery date for the aircraft, with CEO Robert Isom saying he couldn’t rely on Boeing’s timeline due to the company’s ongoing challenges. “Let’s just focus on getting one quality aircraft off the line first,” Isom said, underscoring the ongoing uncertainty surrounding Boeing’s production and delivery capabilities.

737 Max Certification Delays Add to Backlog
Certification Issues Exacerbate Production Challenges
In addition to the strike-related disruptions, Boeing is also facing delays in gaining regulatory certification for its new 737 Max models. This includes the Max 10, the largest version of the aircraft, which has not yet been certified by U.S. aviation regulators. These certification delays, combined with the production stoppages, have pushed back the expected delivery schedules for a number of airlines waiting for the latest Max versions. The ongoing uncertainty about when the 737 Max models will receive clearance further complicates Boeing’s ability to meet its delivery commitments.

Limited Deliveries and New Orders Amid Setbacks
Boeing Records New Orders but Struggles to Meet Delivery Targets
Despite the disruptions, Boeing secured 63 new orders in October, including 40 737 Max jets from leasing company Avia Solutions Group. However, the company delivered only 14 aircraft during the same period, a significant shortfall compared to its usual monthly output. Most of these 14 planes had been completed before the strike began, underscoring the lack of new production during the work stoppage. The slow pace of deliveries has affected Boeing’s cash flow, which depends heavily on completing and delivering aircraft to customers. This has further strained the company’s financial position as it grapples with mounting delays and challenges in getting its factories back up to speed.