(Reuters) -Boeing reported a charge of nearly $5 billion related to delays in its 777X jet program on Wednesday.
Despite progress on the 737 MAX, the planemaker continues to face setbacks with its 777X
program. It said the first delivery of the 777X have been pushed to early 2027, delaying the timeline further from the previously expected 2026 launch.
The aircraft was originally slated for delivery in 2020 when the program was launched in 2013.
Last month, CEO Kelly Ortberg said the company was behind schedule in certifying the jet, saying a "mountain of work" needed to be done. He, however, said no new technical problems had been identified and did not indicate a new delay to the first delivery.
After years of grappling with quality issues and production delays on its flagship 737 MAX, Boeing cautiously ramped up monthly output in 2025.
Earlier this month, the company received the long-awaited approval from the U.S. Federal Aviation Administration to increase 737 MAX production to 42 jets per month, easing a cap of 38 that had been in place since January 2024.
That cap was imposed following a mid-air panel blowout on a nearly new aircraft.
Boeing delivered 55 jets in September, marking its strongest performance for that month since 2018. This was a significant jump from the 33 deliveries recorded a year earlier, when a strike involving 33,000 factory workers in the Pacific Northwest disrupted production.
For the first nine months of this year, Boeing has delivered 440 aircraft, up from 291 during the same period of 2024.
Deliveries are closely watched by Wall Street, as planemakers typically receive the bulk of their payments upon handing over the jets to customers, making deliveries a key indicator of revenue and cash flow.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Sriraj Kalluvila)
