Boeing's plane deliveries experienced a significant decrease in May 2024 compared to the same month in the previous year, dropping by half. This decline was primarily attributed to a slower assembly line, as the company focused on improving manufacturing quality. The Boeing 737 MAX single-aisle jets, in particular, saw a production slowdown following a mid-air incident in January 2024, which led to increased scrutiny from regulators. In May 2024, Boeing delivered 24 commercial planes, a stark contrast to the 50 jets delivered in May 2023. The decrease in deliveries was also reflected in the company's monthly output, which reportedly fell to as low as single digits in late March 2024, well below the Federal Aviation Administration-imposed cap of 38 jets per month.
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Aircraft deliveries are a crucial factor for Boeing and its investors, as the company receives the majority of its payment upon the handover of jets to customers. This decline in deliveries could potentially impact Boeing's financial performance and stock value. In addition to the production slowdown, Boeing also faced challenges with its orders. The company reported taking four gross new orders in May 2024, all of which were Boeing 787-10 Dreamliners for Eva Air. However, after accounting for cancellations and conversions, Boeing posted a net total of 103 orders since the start of 2024. After further adjustments to reflect the quality of the backlog, Boeing reported adjusted net orders of 130 airplanes so far in 2024.
The decline in Boeing's plane deliveries in May 2024 was not an isolated incident. The company had already experienced a 45% decrease in MAX jet deliveries in April 2024 compared to the same month in 2023. Furthermore, Boeing's European rival, Airbus, also reported a 16% decrease in deliveries in May 2024 compared to the previous year, with a total of 256 deliveries so far in 2024. The challenges faced by Boeing in 2024 were not limited to production and delivery issues.
Fitch Ratings lowered its 2024 forecasts for Boeing's aircraft delivery and free cash flow in May 2024, citing the company's ongoing investigations and slumping production. This downgrade followed a previous downgrade in April 2024, indicating the severity of the situation. Overall, Boeing's plane deliveries in May 2024 highlighted the company's struggles to maintain production and meet delivery targets amidst ongoing investigations and quality improvement efforts. The decline in deliveries and orders could have significant implications for Boeing's financial performance and stock value in the coming months.