Despite booming demand for new jets, Boeing’s delivery numbers were the lowest since the pandemic, and net orders came in at just 377, less than half of Airbus’s 826.
Boeing reported year-end numbers on 14 January, while Airbus reported its numbers on 09 January.
With production challenges, labor strikes, and ongoing financial struggles, 2024 proved to be yet another turbulent year for the aerospace giant.
But with a new CEO, fresh strategies, and some encouraging late-year orders, could 2025 finally be the year Boeing turns things around?
Boeing’s string of difficult years extended into 2024, marked by production disruptions, financial losses, leadership changes, and lingering reputational challenges. The year began on a troubling note with the infamous Alaska Airlines Flight 1282 incident. On 5 January, a mid-flight door panel failure on a 737-9 MAX shocked the world.
The near-tragedy underscored ongoing quality control issues within Boeing’s manufacturing processes. In response, the FAA imposed a cap of 38 units per month on 737 MAX production. While this limit reflected the regulator’s concerns over Boeing’s safety standards, the company remained unable to reach even this reduced production rate for most of the year.
Labor unrest added to Boeing’s challenges. In mid-September, 33,000 machinists represented by the International Association of Machinists and Aerospace Workers (IAMAW) went on strike—the first such action in 16 years.
The strike lasted 53 days and brought production of the 737 MAX, 767, and 777 programs to a grinding halt. The work stoppage, coupled with pre-existing supply chain issues, delayed deliveries and deepened Boeing’s financial woes. Production of the 737 MAX did not resume until early December, and widebody production restarted just before Christmas.
Compounding these difficulties, Boeing announced in October that it would lay off 10% of its workforce. This was in addition to the nearly 5,000 layoffs announced earlier in the year. These reductions were a stark reminder of the financial and operational strain the company faced as it grappled with declining revenue and escalating losses.
In March, Boeing’s long-time CEO Dave Calhoun announced plans to step down by year-end. On August 7, he handed over the reins to Kelly Ortberg, a seasoned executive tasked with steering Boeing out of its crisis.
Ortberg’s leadership style marked a departure from Calhoun’s, with a greater emphasis on direct engagement with factory workers. By requiring company executives to spend time on the production floor, Ortberg sought to address morale issues and improve communication across the organization.
While Ortberg’s tenure began with bold promises of change, he inherited a company in turmoil. Boeing’s losses totaled $8 billion by Q3 2024, a staggering 260% increase year-over-year. With Q4 results yet to be announced, the financial outlook for the year remained grim.
Further setbacks in Boeing’s key programs added to the company’s woes. The 777X program, once heralded as a game-changer in the widebody market, faced additional delays. These delays have pushed its entry into service to late 2026.
Certification flights for the 777-9 resumed on 16 January after a months-long grounding due to thrust link issues, but the program’s delays have already cost Boeing significant market share.
The 737 MAX 7 and MAX 10, intended to bolster Boeing’s narrowbody lineup, also faced continued certification delays. These setbacks have limited Boeing’s ability to compete with Airbus’s highly popular A320neo family, further eroding the company’s position in the narrowbody market.
Boeing’s struggles cannot be divorced from the legacy of the Ethiopian Airlines and Lion Air 737 MAX crashes in 2018 and 2019. Together, these two tragedies claimed 346 lives. These tragedies led to a 20-month global grounding of the 737 MAX, severely tarnishing Boeing’s reputation. While the aircraft has since returned to service, lingering distrust among airlines and regulators has hampered its recovery.
The fallout from the crashes continues to weigh on Boeing’s finances. Outstanding criminal cases related to the incidents total nearly half a billion dollars. These cases reflect the long shadow cast by these events. Meanwhile, the Airbus A320neo has cemented its position as the best-selling narrowbody jet. As a result, the 737 MAX is struggling to regain its pre-crisis dominance.
The pandemic-era disruptions to global manufacturing and logistics continue to echo across the industry. Suppliers, still recovering from workforce shortages and financial pressures, are struggling to meet the growing demand for components, particularly for engines, avionics, and advanced materials. For Boeing, which sources parts from a vast network of global suppliers, even small delays can cascade into significant production bottlenecks.
However, supply chain challenges are not unique to Boeing, as its European rival has also grappled with similar disruptions. Delays in securing parts for the A320 family and A350 widebodies slowed Airbus’s production capabilities in 2024, even as demand for its aircraft surged. Without these obstacles, Airbus would likely have widened its lead over Boeing even further.
To address these challenges, Boeing has begun implementing a dual strategy of internal consolidation and supplier collaboration. In 2024, the company acquired the majority of Spirit AeroSystems, a move aimed at regaining control over critical components like fuselages and flight decks for its flagship programs, including the 737 MAX and 787. This acquisition marks a return to a more vertically integrated production model, which Boeing hopes will reduce its reliance on external suppliers and improve quality control.
Additionally, Boeing is working closely with its remaining suppliers to streamline production and secure a steadier flow of parts. Investments in digital tracking systems and predictive analytics are helping the company identify potential disruptions earlier and mitigate their impact. While these measures are promising, their full effect may not be felt until 2025 or beyond.
For now, Boeing’s supply chain remains a fragile link in its recovery strategy. As the company seeks to rebuild its reputation and ramp up production, addressing these bottlenecks will be critical to meeting its ambitious goals and regaining its competitive edge.
Despite a rocky year, Boeing did experience several high-profile wins. Turkey-based Pegasus Airlines placed a blockbuster $36 billion order for 100 737 MAX 10 aircraft, with an option for 100 more. Flydubai added 30 787-9s to its fleet, while American Airlines committed to 85 737 MAX 10s.
On the production front, the company plans to ramp up 787 Dreamliner production from five per month to ten by early 2026, signaling confidence in the long-term outlook.
Airbus continues to dominate, delivering 602 A320-family jets in 2024, including over 300 A321neos—a model for which Boeing has no direct competitor. In widebodies, Airbus’s A350 secured 57 deliveries and 138 net orders, while Boeing’s 777-9 program remains stuck in delays until at least 2026
Airbus is also aiming to make headway in the American cargo market, historically Boeing’s stronghold. With production of the 767 freighter winding down by 2027 and the 777-9 freighter delayed until at least 2028, Airbus sees an opening with its A350F, which already has 60 orders.
Boeing’s challenges in 2024 underscore the depth of its operational and financial struggles. From declining deliveries, high-profile incidents, labor unrest, and leadership changes, the company has faced a near-perfect storm of adversity.
However, with new leadership, a commitment to quality, and some promising late-year orders, Boeing is positioning itself for a comeback. Key priorities include overcoming production challenges, accelerating deliveries, and restoring customer confidence.
The stakes couldn’t be higher. Airlines and the flying public have little patience left after years of delays, scandals, and safety concerns. For Boeing, 2025 must be a year of action and results.
As Ortberg leads the charge, the aviation world is watching closely. Can Boeing reclaim its place at the top? The answer lies in the months ahead. For now, all eyes are on 28 January, when Boeing will release its Q4 financial results—and perhaps, a clearer picture of its flight path forward.
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