Boeing aircraft deliveries are the highest in years. Now it’s accelerating

boeing is expected to report this week that it delivered the most aircraft last year after stabilizing production, the most since 2018, the clearest sign of a turnaround after years of safety crises and snowballing quality defects.

Now, the aerospace giant plans to expand production.

“It’s a long road to recovery from a dysfunctional culture, but we’re making great progress,” said Richard Aboulafia, managing director of Aerodynamic Advisory, an aerospace industry consulting firm.

Boeing has been forced to scale back production in recent years after two fatal crashes on its popular 737 Max planes in 2018 and 2019, and a mid-air explosion of a door plug on one of its planes in the first week of 2024. The coronavirus pandemic has disrupted aircraft assembly at Boeing and its biggest rival, Airbus Inc., due to supply chain delays and the loss of experienced workers, even after the worst of the health crisis subsides.

Boeing leaders, including CEO Kelly Ortberg, a longtime aerospace executive who came out of retirement to take the top job months after the mid-air door plug incident, are preparing to ramp up production of the company’s cash-rich 737 Max aircraft and long-range 787 Dreamliner this year.

That could allow the company, the top U.S. exporter by value, to return to profitability this year, as analysts expected. It’s territory that has been out of reach for seven years as company leaders focused on damage control and reassuring disgruntled airline executives waiting on delayed planes.

As Boeing became more predictable and production increased with the blessing of the Federal Aviation Administration, their tone changed. In a sign of the FAA’s growing confidence in Boeing, the agency announced in September that after years of regulation, Boeing may issue its own airworthiness certificates for some of its 737s and 787s before they are delivered to customers.

Boeing’s commercial aircraft business is the company’s largest division, accounting for about 46% of its sales in the first nine months of last year, with defense and services accounting for the rest. Boeing last reported full-year profits in 2018.

Investors are hoping for further improvement. Boeing shares have risen 36% over the past 12 months, outperforming the stock. S&P500is progressing by nearly 20%.

“Boeing is definitely better and more stable,” said Bob Jordan, CEO of all Boeing companies. southwest airlinesin an interview on December 10th.

The company plans to announce an outline of its 2026 production plans when it releases its quarterly results on January 27, later this month.

For Boeing, the recent turnaround occurred primarily on the assembly floor.

Under Ortberg, manufacturers cut back on so-called out-of-order assembly work to avoid costly mistakes. The company also made other manufacturing changes, including added training.

The National Transportation Safety Board announced in June that its investigation into the cause of the January 2024 door plug explosion found inadequate training and management oversight among the problems at the company.

On Dec. 8, Boeing also completed its acquisition of Spirit AeroSystems, the aircraft manufacturer it spun off from Boeing 20 years ago. You now have more direct control over your key suppliers.

Boeing delivered 537 aircraft in the first 11 months of last year. The newspaper reported December deliveries on Tuesday, and Jeffries estimates the company delivered 61 commercial jets last month, 44 of which were Boeing’s best-selling 737 Max.

Boeing delivered 348 aircraft in 2024 and 528 in 2023. Last year’s total is still far short of the 806 aircraft delivered in 2018.

Last October, the FAA raised Boeing’s 737 Max production cap from 38 to 42 per month (the FAA sought approval after the door plug incident). Chief Financial Officer Jay Malabe said at a Dec. 2 UBS conference that the company expects to reach that production rate in early 2026. Ortberg told investors in October that five more rate hikes were planned.

Malabe said deliveries to airlines in 2026 are likely to be new production rather than clearing out old inventory. He also added that as of the beginning of this year, Boeing could produce about eight Dreamliners a month.

Delivery times are important to aircraft manufacturers because airlines and other customers pay a large portion of an aircraft’s price when they receive it. Airbus, Boeing’s main competitor, is scheduled to report its 2025 order and delivery results on Monday.

Still, some planes that were already expected to carry passengers, such as the Boeing 777X and the Max 7 and Max 10 planes, have yet to be certified, draining Boeing of funding and driving up costs.

Southwest Airlines is waiting for the smallest member of the Max family, the Max 7, which has been delayed. This model is important for low-demand airline routes because it allows airlines to avoid oversupplying the market with seats and driving down fares.

Southwest Airlines CEO Jordan said last month that the airline does not expect to have the Max 7 in service before the first half of 2027 as Boeing’s certification work continues. Boeing at one point expected it to enter service in 2019.

“We still have a very short time to deliver the aircraft we need, but I’m happy to see the progress we’re making on the Max 7,” Jordan told CNBC.

Douglas Harned, an aerospace analyst at Bernstein, said in a note last week that he expects orders for both Boeing and Airbus jets to remain strong and that demand will continue to outstrip supply for the next 10 years.

Airbus surpassed Boeing in deliveries last year, but Boeing appears to have outpaced its European rival in new orders.

By November, Boeing had recorded 1,000 total orders, compared to 797 for Airbus. Airline customers are starting to look beyond this decade, securing delivery windows through the mid-2030s as they plan for growth and international expansion.

on wednesday, alaska airlines The company announced that it has ordered 105 Boeing 737 Max 10 jets, the Max Group’s longest-running aircraft. Alaska Wing Commander Shane Jones told CNBC that the order is a sign of “not only our confidence in the Max 10 certification,” but also “our confidence in Boeing and its delivery schedule and ability to produce high-quality aircraft on time.”

Alaska Airlines also exercised options on five 787 Dreamliners for more international flights, just over a year after acquiring Hawaiian Airlines. The combination has given Alaska Airlines more Dreamliners and Airbus A330s to reach previously unavailable destinations, including Japan, South Korea and Italy.

Ron Epstein, an aerospace analyst at Bank of America, said the widebody market is currently gaining momentum and orders are starting to be delivered quickly to customers.

In the years following the pandemic, international travel, especially luxury travel, has been particularly strong as travelers have been enjoying vacations around the world. Analysts say the widebody market is heating up as more global airlines focus on long-range jets like Boeing’s Dreamliner and Airbus’ A330 and A350 in the coming years.

Globally, air travel was at nearly 84% in November, the highest on record, according to the latest data available from the International Air Transport Association, the airline industry group.

With travel demand remaining strong, we believe orders to replace older jets and secure new jets will continue to drive growth.

“The magic of air transport is that we can fly until someone comes up with a transporter, like in Star Trek, until we evaporate and emerge somewhere else,” Epstein said.