Boeing recuperates production levels amid supply challenges.

Key Points:

  • After encountering several supply challenges, Boeing is taking strides towards recovery, particularly after addressing a quality issue with supplier Spirit AeroSystems.

  • Boeing provided manufacturing and engineering resources to Spirit AeroSystems to aid recovery, and the issue has been successfully contained or fixed as Boeing moves into the fourth quarter.

  • Boeing made progress with its 777X and 777-8F development programs and delivered 136 commercial aircraft last quarter, affirming its on track to meet its delivery guidance for the 737 and 787 models for the year.

ARLINGTON —Boeing is on a recovery trajectory after navigating a sea of supply issues over recent years. A setback surfaced earlier this year when supplier Spirit AeroSystems informed Boeing of a quality problem with the fuselage section on certain 737 models, thereby delaying deliveries further.

In the face of this issue, Boeing dispatched manufacturing and engineering resources to Spirit AeroSystems to assist in rectifying the problem and expediting the recovery process. As the third quarter draws to a close, the quality issue that triggered work stoppage has been successfully managed and rectified, according to Dave Calhoun, president and CEO of Boeing.

Following the resolution of the Spirit fitting issue discussed in the previous quarter, Boeing resumed deliveries of reworked aircraft in May and began production of newly constructed airplanes that meet their specifications, as West indicated.

As well as making strides in 737 production, which encompasses 737-7 and 737-10 aircraft, easing supply chain tensions has allowed Boeing to advance its 777X and 777-8F development programs.

During the last quarter, Boeing delivered a total of 136 commercial aircraft, with 49 of these occurring in June, as per West's statement. This included 20 787s and 103 737s. The aerospace company maintains confidence in its trajectory to achieve its delivery goals for the 737 and 787 models for the year.

Despite recent improvements, Boeing has yet to overcome all supply chain challenges. Troubles persist, such as bankruptcy proceedings for Incora attempting to force supplier Appli-Tec to fulfill previously placed orders. Spirit AeroSystems has also encountered issues, including labor attrition leading to shortages and additional obstacles.