In 2024, Boeing faces significant challenges, including quality control issues, a major in-flight incident, and labor strikes, leading to operational turmoil and management changes. Annual deliveries plummeted to 348, the lowest since 2021, following a crisis related to the 737 MAX. The company announced a $21 billion capital increase and a 10% workforce reduction, mainly affecting Washington State. Despite some deliveries in December, overall sales were disappointing, prompting hopes for a more successful 2025.
Boeing Faces Challenges in 2024
In 2024, Boeing, the iconic American aerospace giant, is navigating through a series of challenges that have significantly impacted its operations. Quality control issues, a major in-flight incident, and labor strikes have all contributed to a tumultuous year for the company, prompting management changes to address these ongoing difficulties.
Decline in Deliveries and Workforce Restructuring
On Tuesday, Boeing announced a sharp drop in annual deliveries, marking the lowest output since 2021 with only 348 commercial aircraft handed over to customers. This figure is down from 528 deliveries in 2023, which itself was a challenging year due to similar quality concerns that hampered production rates.
The crisis deepened following a January 2023 incident involving a newly manufactured 737 MAX 9, which led to a thorough investigation and a suspension of 737 MAX production. In response, Boeing initiated a substantial capital increase of at least $21 billion to stabilize its finances and announced a workforce reduction of 10%, impacting nearly 5,000 employees in the U.S.
Most layoffs were concentrated in Washington State, where Boeing’s Renton and Everett factories are located. These facilities were severely affected by a strike involving approximately 33,000 workers, which lasted more than 50 days and was resolved with a new labor agreement ratified in November.
Analysts are keenly watching Boeing’s production and delivery numbers, with hopes that the company will stabilize and increase its output of the 737 MAX. Despite the hurdles, December saw Boeing deliver thirty aircraft, including a mix of 737s and twin-aisle models. However, overall sales for the year were disappointing, with only 569 gross orders recorded—its lowest since 2020.
As the company strives to recover from these setbacks and streamline its production processes, the aviation community remains hopeful for a more productive 2025.