During the month of July, Boeing took a dip in both its deliveries and orders because of supplier woes that have left a myriad of planes sitting on the outer area of the Renton facility in Washington state.
The American planemaker delivered 29 jets last month, the lowest amount it has handed over to customers since January 2012.
Boeing’s June performance was much higher, with 82 being delivered to worldwide customers.
But supplier shortfalls, including delays of 737 engines from General Electric, have caused a tremendous slump in planes coming out of the assembly line, causing some discomfort at the manufacturer’s executive offices.
These low numbers have required Boeing to make some changes in their organizational structure. Scott Campbell, the Vice President and the General Manager of the 737 Program—who is also the Renton site leader—
Campbell is to be replaced by Eric Lindblad, who is currently in charge of the development program of the 777X in Everett.
Lindblad will be inheriting the problems of engine and fuselage supplier delays, which is something that became public after Boeing stated their desire to boost the production of the jet.
These delays incurred by the manufacturer are due to affect the 3Q2018 delivery number for Boeing, according to Chief Financial Officer, Greg Smith, with cuts in deliveries expected to be made.
Boeing has said that they will not stop the production line, even with the mounting pressure of unfinished jets being piled up and not being
It would appear that this dip has occurred only in the month of July. As we are around the halfway mark for August, it is unclear how Boeing has been doing deliveries wise.
To determine how steep the decline was,
Starting from April 2018, we have seen 78 orders, featuring 30 737s and 48 787s, which represented ‘a strong month’ for Boeing in terms of orders and deliveries.
Such a breakdown saw American Airlines
In May 2018, things slowed down a notch, with only 43 planes ordered in total, which mainly consisted of Undisclosed Customers booking around 22 of the 43 planes.
For a breakdown, 24 737s, four 777s, and 15 787s were sold during that month, including some Military deals for the P-8A Poseidon.
The low order numbers may have accounted to a pre-Farnborough wait for the manufacturer, but is still recorded as a significant dip compared to April 2018.
In June, we could arguably say that it was an abnormal month. Having recorded 233 orders, a total of 201 737s were sold, together with 13 767s and 19 777s. No Dreamliners were sold during this month.
The real dip came in July with Boeing only recording 30 orders, valued at around $3 billion, featuring 15 737s, five 777s
As some of the bigger orders from Boeing were undisclosed during the Farnborough Air Show 2018, they were not confirmed as official orders.
The only three confirmed customers in the month had GOL Linhas Aereas taking 15 737 MAXs, Hawaiian Airlines with 10 787-9s and Qatar Airways with five 777 Freighters.
The same level of consistency can be seen in the delivery figures to that of the orders figures. April 2018 saw only 44 units delivered, featuring 34 737s, one 777, one 767 and one 787.
That was not the lowest number out of the month’s researched, however.
May 2018 saw an increase in deliveries to 68 units, featuring 47 737s, a pair of 767s, six 777s and 13 787s.
Like in April, the likes of Ryanair, Southwest Airlines, and United Airlines received a significant number of aircraft per month, due to their high intensive backlog.
June 2018 became an even more successful month for Boeing, delivering 82 units consisting of 56 737’s, two 767s, one 747, six 777s and 17 787s.
While the numbers in deliveries do not reflect on orders made for each month, there was a coincidental correlation of June 2018 having the most orders and deliveries out of the periods researched.
And like with the orders, the big dip came in July 2018.
Having delivered 82 units the month prior, July featured a decline to just 39 planes, featuring 29 737s, one 747, one 767 and eight Dreamliners.
This has been the biggest dip since January 2018, when Boeing only recorded 28 deliveries.
The dip may have come from the total cancellations from Boeing starting January 1 to July 31 of this year mounting up to 152 cancellations in total, which would alter production timetables.
Focusing on the last four months, we can see that Boeing is dipping to points like at the start of the year, which wouldn’t show promising thinking as they would be expected to keep their numbers high going towards the end of the year.
Overall, Boeing managed to clinch orders for 27 planes last month, adding up to 487 for the current year.
In less than two weeks, August’s results will come in. Let’s see if the production output has gotten back to normal levels.