Boeing suffers $5bn hit due to 777X production delay 

Boeing has suffered a charge of almost $5 billion in late delivery penalties as production of the long-haul 777X was pushed back.

The US aircraft manufacturer said it now anticipates the first delivery in 2027, resulting in a pre-tax earnings charge of $4.9 billion.

This came in an updated assessment of the new generation 777’s certification timeline. 

Boeing reported that revenue in the three months to September was up by 30% year on year to $23.27 billion with a net loss of $5.3 billion.

The 737 programme stabilised production at 38 per month in the quarter and Boeing jointly agreed with the US Federal Aviation Administration to increase to 42 aircraft per month. 

The 787 programme continued stabilising production at seven per month.

President and chief executive Kelly Ortberg said: "With a sustained focus on safety and quality, we achieved important milestones in our recovery as we generated positive free cash flow in the quarter and jointly agreed with the FAA in October to increase 737 production to 42 per month.

“While we are disappointed in the 777X schedule delay, the airplane continues to perform well in flight testing, and we remain focused on the work ahead to complete our development programs and stabilise our operations in order to fully recover our company’s performance and restore trust with all of our stakeholders.”