Boeing, the world's largest aerospace company, has recently announced that it will resume deliveries of its widebody airplanes to China. This decision comes after a temporary halt in deliveries due to a Chinese regulatory review. According to a source familiar with the matter, Boeing is expected to deliver 777 and 787 planes to China in the coming days. This development is a significant boost for Boeing, which had previously experienced delays in deliveries to China due to various reasons. The company had flagged these delays to investors, and the resumption of deliveries is a positive sign for Boeing's operations in China.
.gif)
In a year-end 2023 filing, Boeing stated that it had about 140 737 MAX 8 aircraft in inventory, including 85 aircraft for customers in China. Boeing delivered 22 aircraft to China between the start of 2024 and the end of April. The Chinese review had impacted Boeing's commercial jet deliveries, which are not expected to increase in the second quarter compared with the first three months of the year.
The resumption of deliveries is a positive development for Boeing, as China is a crucial market for the company. The country is projected to account for 20% of the world's aircraft demand through 2042. Boeing's CFO, Brian West, had previously expressed concerns about the company's cash flow due to the delays in deliveries to China. However, the resumption of deliveries could provide some upside to Boeing's $10 billion free cash flow target for 2025-2026.
In addition to the resumption of widebody deliveries, Boeing has also resumed deliveries of its 737 MAX to China. This is a significant development for Boeing, as the 737 MAX had been grounded in China for several years due to safety concerns. The resumption of deliveries is a sign that Boeing has addressed these concerns and is regaining the trust of its customers in China. Overall, the resumption of widebody airplane deliveries to China is a positive development for Boeing. It demonstrates the company's commitment to the Chinese market and its ability to navigate regulatory challenges. As Boeing continues to deliver its widebody and narrowbody planes to China, it is well-positioned to benefit from the country's growing demand for air travel.