Boeing Co. (NYSE:BA) disclosed a decrease in commercial airplane deliveries for April, delivering 24 jets compared to 26 in the same month last year. The reduction is part of ongoing efforts by the U.S. planemaker to enhance the production quality of its 737 MAX jets.
In addition to the drop in deliveries, Boeing experienced a significant number of cancellations, with 33 for the month. A major contributor to these cancellations was Canadian budget airline Lynx Air, which ceased operations and accounted for 29 of the cancellations.
The company has taken measures to reduce the production rate of its MAX single-aisle jets following a mid-air incident on January 5, where a door plug on a 737 MAX 9 jet blew out, prompting increased regulatory scrutiny. As a result, Boeing delivered one fewer MAX jet this April compared to last year, when deliveries were also affected by a supplier’s manufacturing defect.
Reports from Reuters in April highlighted that Boeing’s production rates had dropped to single digits in late March, substantially below the 38 jets per month cap imposed by the Federal Aviation Administration (FAA).
Deliveries are a critical metric for Boeing as the majority of the company’s revenue from aircraft sales is recognized at the point of delivery to customers.
Despite the setbacks, Boeing reported seven new gross orders for April, bringing its total for the year to 138. However, accounting for cancellations and conversions, the net orders for 2024 stand at 100. Adjusted for further quality assessments of the backlog, the net orders amount to 127 airplanes for the year.
As of April 30, Boeing’s order backlog has slightly decreased from 5,668 to 5,646. This report comes as Boeing’s European competitor, Airbus, announced it had delivered 61 aircraft in April, marking a 13% increase from the previous year and totaling 203 deliveries for the year.
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