The “Dog Days” Of Summer Are Not Causing Boeing To Sweat

EVERETT, WA – FEBRUARY 14: Boeing 777 passenger planes in various stages of completion factory in Everett, Washington. (Photo by Stephen Brashear/Getty Images)

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Boeing continues to consolidate its gains as production of its key moneymaker, the 737MAX, neared its monthly production cap and progress on other programs was evident, despite an ongoing strike in its defense unit.

Since the first of the year, the company’s stock has risen 37%, and aircraft deliveries are outpacing analyst estimates.

In July, Boeing delivered 37 MAXes. The FAA has mandated a production cap of 38 per month for safety and quality concerns. This compares to an average of 35 per month over the previous three months of June, May and April.

Boeing intends to move to a rate of 42 per month later in the year, pending FAA approval.

“Our fundamental changes to strengthen safety and quality are producing improved results as we stabilize our operations and deliver higher quality airplanes, products and services to our customers,” said Kelly Ortberg, Boeing president and chief executive officer during a 2nd quarter earnings call.

In first half of August, Boeing delivered 17 aircraft according to Cirium, an aviation data company. These included 15 MAXes, one 777 freighter and one 787-9, indicating sustainability of assembly operations and supply chain performance.

Included in the MAXes were three deliveries to Chinese airlines (China Southern, China Eastern and Shanghai Airlines). Despite the tariff turmoil, bans on delivery of aircraft were lifted by the US administration in June of this year with a 90 day suspension.

That suspension expired on August 11, but was renewed for another 90 days. It is now set to expire on November 11, and during that time a 10% reciprocal tariff remains in effect.

China is a key market for Boeing, and several Chinese airlines are hoping to rely on Boeing to expand their fleets. At the end of July, Boeing’s backlog stood at 6,572 aircraft. Ten percent of that backlog is slated for delivery to Chinese airlines.

Another important milestone was reached in the 777X program with the fifth 777-9 completing its first flight. Boeing is hoping to conclude its testing and certification requirements by end of the year, allowing first deliveries in 2026.

Originally scheduled for 2020, the program is now six years behind schedule with an unfilled backlog of 551 aircraft.

For the first half of the year the company’s revenues have increased 26% following a shutdown of operations after a near fatal door blowout on an Alaska Airlines 737MAX in January 2024. That incident resulted in the firing of the Commercial Airplanes unit CEO and Boeing company CEO, who was replaced by Ortberg a year ago.

Although the company is still losing money, operating cash flow turned positive in the second quarter at $227 million versus a nearly $4 Billion negative figure in the same period in 2024.

These positive developments were offset by a continuing strike in its St Louis based defense unit. The strike by 3,200 members of International Association of Machinists unit 837 entered its second week with no clear signs of progress.

Although endorsed by labor management, the rank and file rejected the initial offer of a 20% wage increase and a $5,000 acceptance bonus. After a two week “cooling off” period, the strike commenced earlier in August and Boeing has not showed any immediate effort to resolve the impasse.

The company has rescinded the $5,000 bonus offer and Bryan Bryant, President of the national union is urging “the Boeing Company to return to the bargaining table to negotiate a good faith agreement commensurate with the skills and dedication of this workforce.” He has also asked for lawmakers to intervene to end the strike.

Boeing’s stance indicates a growing confidence in the ability to weather business and labor challenges. It resolved a longer strike in November of last year that affected 33,000 workers in their Commercial Airplanes unit in Seattle, after a month long work stoppage.

Although global trade turmoil and political tensions will continue, the largest exporter for the US is on a steady, upward course.