In October 2024, Boeing (NYSE: BA) faced a major reduction in commercial aircraft deliveries due to a prolonged strike and financial challenges.
Reasons for Delivery Reduction
Compared to October of last year, Boeing's aircraft deliveries were slashed by more than half, from 34 to 14 aircraft. The reduction was primarily due to a seven-week strike, which began on September 12 and ended on November 5, halting the production of models 737 MAX, 767, 777, and 777x.
Union Agreement Terms
The strike involved 33,000 unionized workers from the International Association of Machinists and Aerospace Workers (IAM), demanding better wages and benefits. As a result of negotiations, Boeing agreed to increase wages by 38% over four years and provide a $12,000 cash bonus for hourly workers, along with enhanced retirement contributions.
Boeing's Financial Challenges
Boeing also reported a $6.1 billion loss in the third quarter and a revenue decline to $17.8 billion. To address its financial situation, Boeing plans to increase the production of the 737 model to 38 aircraft per month. As of November 13, 2024, Boeing shares are trading at $142.605, with a yearly low of $141.75.
Despite significant financial and production challenges, Boeing aims to recover by increasing production capacity and stabilizing its financial status.
