Boeing has announced a significant delay in the launch of its 777X jet, now projected for early 2027. This marks a setback from initial expectations of a 2026 delivery. The report from Bloomberg News reveals insights from unnamed sources familiar with the situation.
Key Facts on Boeing’s 777X Delay
Deutsche Lufthansa AG is set to be the launch customer for the 777X. However, the airline is realigning its fleet plans, now excluding the aircraft until 2027. Boeing has not commented on the delay, but internal challenges remain evident.
Financial Implications
Analysts predict that Boeing will need to acknowledge a financial charge related to the 777X delay. This could amount to between $1 billion and $4 billion, potentially impacting the third-quarter earnings report due later this month.
- Delivery of 777X delayed to early 2027
- Initial delivery planned for 2026
- Deutsche Lufthansa adjusts fleet plans
- Potential financial impact of $1 billion to $4 billion
Certification and Production Challenges
Boeing CEO Kelly Ortberg has acknowledged that the company is behind schedule with certification processes. He stated that there is still a considerable amount of work to be done to meet certification requirements. However, he also confirmed that no new technical issues had surfaced.
Since the launch of the 777X program in 2013, Boeing has already incurred over $10 billion in charges. The expectation for the start of deliveries now hinges on reconsidered timelines, with some analysts like Ken Herbert from RBC Capital Markets suggesting deliveries may commence in the latter half of 2027.
Outlook for Boeing
The ongoing challenges with the 777X may lead investment analysts to revise their projections. The announcement of additional certification difficulties has already influenced expectations for free cash flow in 2026.
As Boeing navigates these delays, the aviation industry remains attentive to updates regarding the 777X project’s future.
