Boeing Disrupts 2026 Delivery Schedule, Shares Drop 10%
Aviation giant postpones target production of 737 aircraft to 2027
Aircraft manufacturing giant Boeing will be unable to meet its production and delivery targets for 2026, according to company CEO Kelly Ortberg. Following the revision of forecasts, the corporation's securities plummeted nearly 10%, marking the worst single-day performance in over a year and a half.
The company has significantly downgraded its free cash flow forecasts due to reduced shipments and increased capital expenditures. Free cash flow is expected to reach approximately $3 billion in 2027 (compared to Wall Street's consensus forecast of $5.5 billion). The target of $10 billion is anticipated to be achieved by 2029.
The production schedule for the popular 737 model has also been revised. The target of assembling 47 aircraft per month has been postponed from summer 2026 to early 2027. These delays will prevent the company from meeting its initial plan of delivering 500 aircraft per year.
Going forward, Boeing plans to increase production to 52 aircraft per month in the second half of 2027. This will require launching a new assembly line in Everett (for 5 aircraft per month) and increasing fuselage production at the Wichita plant (a former Spirit AeroSystems asset), where previously formed inventories are still being used.
In addition to the 737 family, the corporation faces production barriers in other programs.
Wing production issues. The production of wings remains a bottleneck. A dispute with a supplier previously temporarily halted the assembly of wings for 777 freighters and the 767 model (including KC-46 military tankers). Component deliveries have resumed, but regulatory and logistical consequences will be felt for several more quarters.
Wide-body segments. Challenges persist with the production rates of the 787 Dreamliner.
777-9 certification. The only positive signal is the 777-9 program—Boeing expects to complete its certification on schedule (by mid-2027) and deliver between 10 and 15 such aircraft next year.
