Key Takeaways
- Boeing said Tuesday that it delivered 83 planes in the first quarter of 2024, the lowest quarterly number since 2021.
- Boeing has slowed production amid a series of incidents that have caused concern over the safety of the company’s aircraft.
- Regulators are investigating a Jan. 5 incident in which a door plug detached from an Alaska Airlines flight in mid-air, and an investigation revealed missing bolts in the plane and others in the 737 Max line.
Boeing (BA) on Tuesday reported its fewest quarterly deliveries since 2021 amid slowed production following a series of incidents that have sparked regulatory scrutiny over the safety of its planes.
Boeing delivered 83 planes in the first quarter of 2024, 67 of which were 737s, down from 130 planes delivered in the prior-year quarter. The deliveries are Boeing’s fewest since it delivered 79 planes in the second quarter of 2021.
The first quarter of 2024 was marred by several issues for Boeing, starting with a Jan. 5 incident in which a door plug flew off an Alaska Airlines flight. Subsequent investigations found that key bolts were missing on the plane, as well as missing or loose on other planes in the 737 Max 9 line, leading to the fleet being grounded.
The airplane manufacturer suspended its 2024 guidance as investigations were ongoing into its planes. Other incidents, like a LATAM Airlines flight that arrived in New Zealand after experiencing a “technical event” that injured several passengers and a United Airlines (UAL) pilot reporting rudder pedals getting stuck during a landing, also are being investigated by regulators.
The Department of Justice is reportedly investigating the Alaska Airlines incident, interviewing crew members and informing passengers they may be the victim of a crime.
Following months of incidents and investigations, Boeing announced shakeups at the executive level last month. Chief Executive Officer (CEO) Dave Calhoun is now set to step down at the end of 2024, the independent chair of Boeing’s board is also being replaced, and the head of its Commercial Airplanes division is retiring.
Also on Tuesday, the New York Times reported that the Federal Aviation Administration (FAA) is investigating whistleblower claims that “sections of the fuselage of the 787 Dreamliner are improperly fastened together and could break apart mid-flight after thousands of trips.” Boeing told the Times there is no safety risk with the planes.
Boeing shares fell 2.4% to $177.27 as of about 2:45 p.m. ET Tuesday and are down about 32% so far this year.