Boeing 737 deliveries ‘held steady’ in September despite strike concerns

Investing.com — Boeing (NYSE: ) deliveries of its 737 jets “held firm” in September, thanks in part to steps the aerospace giant took to offset the impact of an ongoing strike by workers in the US Pacific Northwest, according to analysts. at Bank of America.

Boeing delivered about 28 planes during the month, down slightly from 32 units in August, BofA analysts said, citing data from aviation research group Cirlum.

Calling the total “solid,” analysts noted that 70 percent of monthly deliveries were made before the shutdown began.

Third-quarter deliveries also remained “strong,” with about 92 of Boeing’s popular jetliners delivered during the period, compared with 70 in the second and third quarters, the data showed.

However, compared to the corresponding time frames of 2023 and 2022, 737 deliveries were down 20 percent and 17 percent, respectively, BofA analysts said.

They signaled that the company’s delivery performance going forward “will largely depend” on the length of the strike, which is now in its third week.

Workers rejected two pay proposals from Boeing, prolonging the labor action and putting further pressure on the planemaker’s finances and production at a time when its safety record is already under intense scrutiny. Boeing’s credit rating is also close to junk status, Reuters reported.

Boeing’s chief financial officer, Brian West, warned that the work stoppage could also threaten the company’s supply chain.

Last week, Boeing said it had presented employees with a sweetened deal that would have included an across-the-board pay increase of 30 percent over four years and improved retirement benefits. Boeing said it was its “best and final” offer.

However, the International Association of Machinists and Aeronautical Workers District 751, which represents the 33,000 striking workers, rejected the approach, saying it was “thrown at us” by Boeing without prior negotiations.

A mediator has been hired to help resolve the impasse, Bloomberg News reported.

Boeing is also looking at a potential stock sale worth at least $10 billion as part of a bid to raise funds, according to Bloomberg.