Boeing Resumes Widebody Jet Deliveries to China

According to a source familiar with the matter, Boeing is set to resume deliveries of widebody jets to China, which had been paused due to a Chinese regulatory review.

The source indicated that deliveries of the widebody 777 and 787 planes are expected in the coming days. Additionally, Boeing’s 737 MAX deliveries are projected to resume as early as next month.

Impact of the Delay:

This development marks a significant boost for Boeing, which had previously informed investors about the delay.

Reuters first reported the delay in May, and it was attributed to a review by the Civil Aviation Administration of China (CAAC). The review focused on the batteries in the 25-hour cockpit voice recorder.

Boeing’s Response and Financial Impact:

Boeing directed requests for comment to the regulator. The delivery delays and factory disruptions had led Boeing CFO Brian West to forecast a second-quarter cash burn that could be in line with or worse than the $3.9 billion reported in the first quarter.

Inventory and Delivery Details:

In a year-end 2023 filing, Boeing revealed it had approximately 140 737 MAX 8 aircraft in inventory, 85 of which were designated for customers in China. Between the start of 2024 and the end of April, Boeing delivered 22 aircraft to China.

The Chinese regulatory review had significantly impacted Boeing’s commercial jet deliveries. As a result, an increase in deliveries is not expected for the second quarter compared to the first three months of the year.