Boeing could delay deliveries of its flagship 777X for another year. What does this mean for investors?

Boeing's new flagship 777X airliner will not enter commercial service in 2026 as the company had planned, Bloomberg reported, citing sources. Another failure for the largest U.S. aircraft maker may entail multibillion-dollar accounting write-offs.

The first commercial flight of Boeing 777X - a long-range airliner with carbon fiber wings and the largest engines in the history of passenger aviation - will take place not next year, but in early 2027, according to Bloomberg interlocutors. German airline Lufthansa, the first 777X customer, is already adjusting plans, one of the sources told the agency. The management of Emirates, the largest buyer of the 777X, has also become more cautious in its estimates and expects the aircraft to enter service no earlier than 2027, the article said.

The airliner has been delayed for six years. At the same time, it is of strategic importance for Boeing in its competition with Airbus for a share in the lucrative market of long-haul transportation. In addition, another delay will reduce the cash flow needed for the company to recover from a multi-year crisis, the agency notes.

According to Bloomberg, Boeing management intends to provide details of the postponement and its financial impact on October 29 when it discloses its quarterly results. A spokeswoman for the aircraft maker declined to comment, citing a "period of silence" before the publication of the statements.

Jefferies analyst Sheila Kahyaoglu predicts that Boeing could report an accounting write-down of up to $4 billion due to the postponement of deliveries. This amount covers the aircraft manufacturer's expected revenues from the delivery of 18 airplanes next year, compensation to customers and other expenses.

Ken Herbert of RBC Capital Markets believes that the 777X's entry into service will be pushed back to the second half of 2027, with a write-down of about $2.5 billion - in line with past practice.

After the publication of Bloomberg about another postponement of the delivery of long-haul flagship Boeing shares in trading in New York on October 2, lost part of the morning growth, but were able to end the trading session in the plus 1%. Since the beginning of 2025 quotations of the company rose by 23%, recovering from the collapse in 2024.

October 1, Jefferies reiterated a "Buy" recommendation on Boeing shares and a target price of $255 per share. The investment bank referred, in particular, to the recent publication of The Wall Street Journal, according to which the aircraft manufacturer is again focused on the development of a narrow-body airplane of the new generation - the successor to the problematic 737 MAX - and is discussing with Rolls-Royce innovations in the field of aircraft engines. The window of opportunity to launch a new model could open after 2035, Jefferies believes.

This article was AI-translated and verified by a human editor