After the grounding of its 737 Max aircraft, Boeing is now facing production problems with its its 787 Dreamliner planes
The Virginia-based aircraft manufacturer is projecting a slower increase in production of its 787 Dreamliner planes due to supply shortages of a “a few key parts,” Reuters and CNBC report, citing a memo sent to staff Monday. Boeing confirmed the reports Tuesday morning.
While Boeing still expects to ramp up production to meet “strong demand,” supplier shortages will result in a slower increase in the company’s rate of production and deliveries of the commercial aircraft, Scott Stocker, Boeing’s 787 vice president and general manager, said in a memo to employees at its South Carolina 787 plant.
“We continue to take steps to improve the overall health of our production system, putting into action your ideas for improving safety, first-pass quality, training, performing more work in sequence and ensuring our teams have the necessary resources to excel,” Stocker said.
Boeing already took a hit to deliveries last quarter after a door plug blew out on one of its 737 Max planes mid-flight in January, causing the aircraft to be grounded as regulators inspected the planes for safety concerns. In the first quarter of 2024, Boeing delivered just 83 planes — 13 of which were 787s.
Given the current pace of production, Boeing is not expected to break 350 commercial plane deliveries by December.
By the end of 2023, the airplane maker was producing 787 Dreamliners at a rate of five per month, the company said in its fourth-quarter earnings report in January. It hopes to double that figure by as early as next year, CFO Brian West said in a call with analysts.
Quality problems brought the delivery of 787s to a grinding halt for more than a year. The company resumed its deliveries of the aircraft in mid-2022.
Boeing stock was flat in Tuesday morning trading. The company’s shares are down more than 30% since the start of 2024.
Boeing is set to report its first-quarter earnings on Wednesday.
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