Zinger Key Points
- Boeing delivered 44 jets in June, a 27% decline from the same period last year.
- Boeing faces legal challenges, plans to boost production by year-end.
Boeing Co BA shares are trading lower after the company announced its June FY24 deliveries across its commercial and defense operations.
The aircraft manufacturer announced on Tuesday that it delivered 44 commercial jets in June, the highest monthly total this year, though this represents a 27% decline from the same period last year.
The company plans to boost production by year-end, despite facing supply chain issues and increased regulatory scrutiny following a mid-air incident with a 737 MAX 9 jet in January, reported Reuters.
The decrease in deliveries comes amid ongoing legal and production challenges. Boeing delivered more commercial jets in June than in any other month this year, the report highlighted.
On Sunday, the U.S. Justice Department announced that Boeing agreed to plead guilty to a criminal fraud conspiracy charge related to two fatal 737 MAX crashes in 2018 and 2019.
This development has raised concerns about Boeing’s ability to secure government contracts.
In June, Boeing delivered five 777 freighters, including two to Air China, marking the resumption of widebody deliveries to China after a regulatory review halted them in the spring, the report added.
Also Read: US Regulator Orders Inspection Of 2,600 Boeing 737s Over Oxygen Mask Concerns Amid Legal Woes
The company also received 11 orders for 777 freighters in June, making it the third-highest month ever for the model, out of a total of 14 gross orders for the month.
After adjustments for the backlog, Boeing reported a net order total of negative 104 for June, bringing its gross order total for the year to 156 the report futther added.
After cancellations and conversions, the net total stands at 115 orders. Further accounting adjustments led to an adjusted net total of 26 orders for the year so far.
Boeing has delivered 175 planes this year, lagging behind its European competitor Airbus SE EADSY, which delivered 323 airplanes in the first half of the year.
Boeing also announced that it secured 327 gross orders in the first six months of 2024, or a net total of 310 after cancellations.
Boeing stock has lost more than 13% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF ITA and Invesco Aerospace & Defense ETF PPA.
Price Action: BA shares are trading lower by 0.18% at $185.50 at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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