While the strike by more than 33,000 Boeing machinists - represented by the International Association of Machinists and Aerospace Workers (IAM) District Lodge 751 and District W24 - has now ended, with workers set to return as soon as November 6 (mandated return by November 12) it will take time to resume deliveries to customers. Nevertheless, Boeing had been delivering aircraft to customers during the strike, with some aircraft, including 737 MAXs, being completed before the labor action by the two IAM lodges.
The number was not significant but still represented some potential revenue for the company, which, even prior to the strike, struggled to deliver aircraft on time, including but not exclusive to following the fallout of the mid-air door plug blowout on an Alaska Airlines flight in January.
Ch-aviation data showed that between September 13, when the IAM’s members initiated their strike at Boeing’s facilities, and November 4, when they voted to approve the new contract, Boeing had delivered 13 737 MAX 8 and 737 MAX 9 aircraft to nine different operators.
The number does not account for five Boeing 787 aircraft that customers received during the strike, which were assembled at the company's non-unionized site in North Carolina. In the United States, three airlines took delivery of 737 MAX aircraft:
Other airline deliveries included South Korea’s Eastar Jet and Jin Air adding one 737 MAX 8 each on September 26 and September 14, respectively, and Turkey-based SunExpress taking delivery of a 737 MAX 8 on October 9.
Three China-based carriers had also taken delivery of 737 MAX aircraft during that timeframe, including Shanghai Airlines (one 737 MAX 8), Shenzhen Airlines (two 737 MAX 8s), and Xiamen Airlines, which added two 737 MAX 8 aircraft to its fleet.
In addition to the 13 737 MAX aircraft that Boeing handed over to its customers between September 13 and November 4, the original equipment manufacturer (OEM) also delivered a single widebody.
The aircraft, a 767F, was delivered to FedEx on October 23, with the cargo carrier of the delivery company continuing to expand its freighter fleet. Boeing’s orders and deliveries data showed that as of September 30, it had 29 767F remaining in its backlog.
|
FedEx |
UPS |
|
|
Remaining 767F deliveries (as of September 30) |
12 |
17 |
When the aircraft manufacturer announced its preliminary Q3 results, Boeing said that it would finish deliveries of the 767F and end the program in 2027, with the assembly line supporting orders for the KC-46A tanker, which is based on the 767.
The announcement also included news that Boeing has once again pushed back the entry-into-service (EIS) date of the 777-9 to 2026.
Kelly Ortberg, the president and chief executive officer (CEO) of Boeing, shared the reasons behind the decision to end the 767F’s production during the company’s Q3 earnings call.
Ortberg said that the company wanted to make the decision now – swallowing down a $400 million reach-forward loss on the program in Q3 – to get a potential distraction out of the way right now.
“We'll finish the deliveries, been a fantastic airplane, and we'll continue to support our customers and support the mil variants of that. But let's declutter our minds with some of this stuff and get our resources really focused on what's going to make a difference for us going forward, and that's the type of stuff I want to really focus on.”
With the exception of the FedEx 767F, registered as N255FE, which operated its first flight on September 20, the delivered aircraft had their first departures before the strike was initiated the second it hit midnight on September 13.
For example, the Alaska Airlines 737 MAX 9, registered as N723AL, took off on its first flight on August 31. Boeing delivered the aircraft on September 25, with the single-aisle jet entering service on October 1. The two Southwest Airlines 737 MAX 8s had their first flights on September 1 (N8930S) and August 30 (N8933Q). Boeing delivered the two airframes on October 25 and September 27, respectively.
However, the Chinese carriers’ 737 MAXs have been in Boeing’s inventory for a much longer time. Out of the five aircraft of the type, three had their first flights in 2022. The one Shanghai Airlines 737 MAX 8, registered as B-226F, departed for the very first time on September 24, 2021, while one out of two 737 MAX 8s of Xiamen Airlines had its first flight on November 13, 2019.
During the company’s Q3 earnings call, Brian West, the chief financial officer (CFO) and executive vice president of Boeing, detailed that as of September 30, the manufacturer had 60 737 MAX 8 aircraft built before 2023.
The majority of those were for customers in China and India, with West adding that the figure was down 30 quarter-on-quarter (QoQ).
However, West warned that the strike, which has now ended, impacted Boeing’s processes of shutting down its shadow factory, which has been working on reducing the number of 737 MAX aircraft in its inventory.
It remains unclear when Boeing will resume 737 MAX deliveries. Considering that its machinists will begin returning to work between November 6 and November 12.
During the same call, Ortberg said that it was probably going to be a “little bumpy return” from the supply chain as Boeing restarts assembling 737s.
