Boeing’s 2024 Plane Production Lags Far Behind Airbus
Synopsis
Boeing’s efforts to climb out of a turbulent few years took another blow in 2024, as the US plane manufacturer struggled to keep pace with its European rival, Airbus. Analysis suggests Boeing may have…
Boeing’s efforts to climb out of a turbulent few years took another blow in 2024, as the US plane manufacturer struggled to keep pace with its European rival, Airbus. Analysis suggests Boeing may have delivered just 340 aircraft this year, compared to Airbus' 766—a gap that starkly underscores the challenges Boeing continues to face.
With Boeing’s latest production struggles occurring after a spate of incidents, industry analysts are questioning whether the aerospace giant can achieve its ambitious production targets in the near future. Boeing's 2024 performance, hindered by production delays, supply chain challenges, and stiff competition from Airbus, raises doubts about its ability to bounce back.
A Year of Falling Short
Boeing is expected to report on Tuesday that it delivered 340 aircraft to customers in 2024, based on forecasts by industry analysts at Flight Plan. This figure is less than half the 766 aircraft Airbus delivered this year, a number the European group claims is within its planned range despite its own supply chain setbacks.
Boeing had begun the year with ambitious goals, intending to ramp up deliveries of its 737 Max model under the new leadership of Kelly Ortberg, who was appointed CEO in July. The new chief executive was handed the task of reviving the struggling manufacturer following a tumultuous few years. However, his job has been anything but straightforward.
A Year Plagued by Setbacks
Boeing’s 2024 began with an alarming incident—a door panel blew out mid-flight due to missing bolts after repair work. The year ended on an even more tragic note with a crash in Korea involving a Boeing 737-800 aircraft, killing nearly all 181 passengers onboard. While investigators have not yet found evidence of design flaws contributing to the crash, these events have not helped Boeing’s battered reputation.
Furthermore, a seven-week workers’ strike at the company’s main production facilities in Seattle severely hampered its manufacturing capacity. The combination of these challenges led to a significant drop in deliveries compared to previous years. Boeing had managed 528 deliveries in 2023 and once held a record of 806 deliveries in 2018 before its infamous 737 Max crisis and the pandemic disrupted operations.
The Battle to Boost Production
Looking forward, Boeing has announced plans to ramp up production of its 737 Max jets. The company’s stated target is to achieve a production rate of 38 planes per month by May 2025. While this ambitious figure signals a desire to recover, analysts are sceptical about whether it is achievable.
Douglas Harned, an analyst at Bernstein, expressed doubts about Boeing’s production goals. "The 38/month rate estimate appears to have been one with high optimism," he noted. Current production rates and a lack of experienced managers overseeing the ramp-up have made it difficult to take the company’s timeline at face value. Some experts, including Harned, predict Boeing won’t meet the May 2025 deadline, suggesting a delay to July or later instead.
Competing Against Airbus
While Boeing grapples with its challenges, Airbus hasn’t had a completely smooth ride either. The European planemaker narrowly missed its adjusted annual target of 770 deliveries, a figure reduced earlier in 2024 due to persistent supply chain issues.
Christian Scherer, CEO of Airbus’ commercial aircraft division, acknowledged that the company fell short of satisfying customer demand. “We are not increasing production as far as our customers would like, and therefore as far as we would like,” he remarked. However, Scherer remains optimistic, stating that Airbus is likely to surpass its 2019 record of 863 deliveries in the near future.
Despite its own setbacks, Airbus has maintained a clear lead over Boeing in market share—a position it has held since the 737 Max crisis caused Boeing’s deliveries to plummet in 2019.
Boeing’s Road to Recovery
Boeing’s ambitions to recover lost production are clear, but the company faces significant hurdles. Supply chain constraints remain a major concern, and Ortberg’s leadership is under pressure to demonstrate tangible progress.
Industry observers have noted that accelerating production without compromising safety will require meticulous coordination across Boeing’s extensive supply network. Regulatory approval processes add another layer of complexity, as authorities remain vigilant after the 737 Max incidents.
Matt Woodruff, an analyst at CreditSights, described Boeing’s production targets as “likely unrealistic.” Yet there are indications the company is aiming to outperform investor expectations to deliver results that will restore both industry confidence and customer trust.
Why Airbus Holds the Upper Hand—for Now
While Airbus faces its own production challenges, it continues to dominate the commercial aviation market. The difference lies in the ability of the European manufacturer to maintain customer confidence despite falling short of production targets. Its reputation for reliability and strong operational foundations has allowed Airbus to remain the manufacturer of choice for many airlines.
With consistent production growth on the horizon, Airbus is poised to extend its lead even further unless Boeing can overcome its obstacles swiftly.
Can Boeing Close the Gap?
The aviation industry remains fiercely competitive, and while Boeing has taken significant hits over the past few years, it retains the capacity to stage a comeback. The potential is clear—the company still produces popular aircraft models and has a dedicated workforce. What remains uncertain is whether Boeing can address operational inefficiencies, manage its supply chain, and deliver on its promises.
The newly-appointed Ortberg will need to provide a clear strategy to instil confidence in stakeholders. Delivering steady improvement in production rates without compromising safety will be pivotal in determining whether Boeing can reclaim its position as an industry leader.
Source
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