Delays on Boeing’s 777X plane cost the company as much as $5 billion – Jalopnik

Boeing reported third-quarter results on Wednesday, and whoa nellie! The aerospace giant posted a huge loss – almost $5 billion – due to continued delays to its 777X aircraft, with first deliveries now pushed back to 2027. The size of the hit surprised Wall Street, which expected something big, but not that big. Here’s Boeing CEO Kelly Ortberg, from the company’s press release:

“While we are disappointed with the delay in the 777X schedule, the aircraft continues to perform well in flight testing and we remain focused on the work ahead to complete our development programs and stabilize our operations to fully restore our company’s performance and restore confidence with all our stakeholders.”

Reuters reported this that analysts expected a one-time loss in the range of $2-$4 billion, so the larger 777X charge increased Boeing’s overall negative result for the quarter to a quite staggering $5.3 billion. The plane is taking forever: it was announced in 2013 and was originally scheduled to go to customers in 2020.

The wide-body flagship has been delayed by issues with its massive GE engines and innovative folding wingtip design, as well as COVID-related supply chain issues that have disrupted the certification process. There actually are two variants, the 777-8 and the 777-9and Boeing is testing the patience of airlines like Lufthansa, which wants the big plane to replace the older and less fuel-efficient planes it continues to fly. (The 777-9 is the first to be certified.)

Ortberg has not exactly concealed the difficulties in certifying the aircraft. In September, he came clean with investors and revealed that the 777X is far from ready for prime time. That was strategic on his part: he telegraphed the bad news, and then Boeing opted to absorb the financial impact all at once, rather than spreading it over several quarters. However, that doesn’t mean they don’t have to keep talking about it. Investors won’t forget about $5 billion.

The 777X delays and cost overruns are embarrassing for Boeing, but the news isn’t all bad. The cash cow 737 has been approved by the federal government for increased production after a door plug blew out in early 2024, prompting an investigation into a plane already in trouble for a pair of fatal crashes. The New York Times reported that Ortberg expects two variants, the 737 Max 7 and Max 10, to be certified in 2026. And Boeing said it had “stabilized” production of the 787, following what the AP cited a “series of setbacks” in the production of the Dreamliner.

These are not great days for Boeing. The 737, 787 and 777 programs have all struggled, and while it appears Ortberg is in the early stages of a turnaround, he still has literally years to go before he can say the ship is fully course-corrected. Encouragingly, Boeing achieved $23 billion in revenues in the third quarter, exceeding expectations, and delivered 160 aircraft to commercial customers. The goal now is to avoid additional delays and large write-offs that could undermine the company’s bottom line somewhat improving progress.