Boeing reported delays with its new airliner and the resumption of 737 Max production

Boeing announced a delay in testing its next-generation 777X airliner, though it confirmed that deliveries of the long-awaited model are set to begin next year. The company also acknowledged that production of its best-selling 737 Max aircraft is taking “a little longer” to stabilize than planned. Boeing does not expect to increase production until 2027. This led to a sell-off of its shares: by the close of trading on September 16, they had fallen 3.7%, and have lost 7% of their value since the beginning of the year.

Boeing expects testing of the long-awaited new 777X model to be delayed: some of the tests will be postponed until 2027. As the company explained, certification of a GE Aerospace turbine component used in the aircraft has not yet been completed, according to Bloomberg. “This will likely create some challenges for us between now and the end of the year,” said Kelly Ortberg, the aircraft manufacturer’s CEO, at a Morgan Stanley investor conference on Wednesday.

The 777X, whose development is now seven years behind schedule, is of great strategic and financial importance to Boeing in its competition with Airbus for a larger share of the lucrative long-haul aircraft market, the agency explains.

Ortberg also confirmed that he expects "very soon" certification of the 737 Max 10—the largest model in the best-selling family of airliners. Its launch has also been delayed by several years. Boeing has completed all necessary flight tests, and regulators are now reviewing the documentation, the company’s CEO said.

The 737 Max 10 is designed to compete with Airbus's most popular airliner, the A321neo. This model is crucial for generating cash and improving Boeing's financial position following a series of crises, Bloomberg notes.

According to Ortberg, production of the Boeing 737 Max is stabilizing “a little later” than expected, and the company expects to increase production of these aircraft next year. CNBC notes that the company is gradually ramping up production of its most in-demand model after several years of crises related to safety and quality. Boeing currently produces about 47 of these aircraft per month.

According to Boeing’s CEO, the company is expecting orders for aircraft from China ahead of the meeting between U.S. President Donald Trump and Chinese President Xi Jinping, scheduled for September 24. Chinese airlines will announce agreements “at their own pace,” Ortberg said. In May, following talks with Xi, Trump stated that China had agreed to order 200 Boeing aircraft. Ortberg later clarified that there would be more contracts.

He also confirmed the free cash flow forecast: it is expected to range from $1 billion to $3 billion this year. However, the company’s chief financial officer, Jay Malave, warned that it is now “slightly less likely” that the figure will exceed the midpoint of that range due to slower delivery rates for the key 737 and 787 models, according to Bloomberg.

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