Boeing has once again postponed the first delivery of its highly anticipated 777X until 2027 and recorded a charge of nearly $5 billion, a figure higher than market expectations. This new setback adds to the list of difficulties for the US aerospace giant, which has now accumulated over $15 billion in excess costs linked to the project.
The 777X is a key piece in Boeing’s long-haul strategy, the natural successor to the iconic 747 and 777. However, certification delays and production issues have postponed its entry into service for years, at a time when global demand for international flights is boosting its main competitor, the Airbus A350.
“A Mountain of Work Ahead”
Boeing CEO Kelly Ortberg recently acknowledged that the company remains “behind schedule” in certifying the 777X and that there is still “a mountain of work ahead.” He clarified, however, that no new technical problems have been identified and highlighted that the program has already accumulated over 4,000 flight test hours, more than double what is typical for similar projects.
Despite this, Ortberg admitted that a significant portion of the certification process still remains before final approval is obtained. Wall Street analysts had already anticipated a significant charge related to the delay, which includes penalties owed to customers for late deliveries.
Boeing’s stock fell 2% in early trading following the news.
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A Partial Financial Relief
The impact of this charge was partially offset by a positive free cash flow of $238 million, the first since 2023. Furthermore, Boeing avoided paying approximately $700 million in fines thanks to an agreement with the US Department of Justice, which allowed it to avoid criminal prosecution related to the 737 MAX accidents.
Years of Quality Problems and Delays
After years of issues with the 737 MAX program, Boeing cautiously began increasing its production in 2025. According to Ortberg, the company has reduced out-of-sequence work on the 737 line by 75% and by 60% across all its programs, indicating an improvement in manufacturing quality.
This month, the Federal Aviation Administration (FAA) authorized an increase in 737 MAX production to 42 aircraft per month, up from the limit of 38 imposed in January 2024 following the mid-flight panel blowout incident.
Boeing continues working on certifying the 737-7 and 737-10 variants, the smallest and largest models in the MAX family.
Financial Results and Defense Operations
In the third quarter, Boeing reported an adjusted loss of $7.47 per share, worse than the $4.59 loss analysts expected. Nonetheless, its revenue increased by 30%, reaching $23.27 billion, above forecasts of $21.97 billion.
The Defense, Space & Security segment also showed strength, with 25% year-over-year growth and performance 10% above expectations, despite a 13-week strike by 3,200 members of the IAM union in St. Louis, which halted deliveries of new F-15EX aircraft to the US Army.
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Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.