Seattle, April 27 - Boeing has reached a pivotal milestone in its efforts to streamline operations and recover from years of production challenges, as the company announced the completion of its 787 Dreamliner rework project and significant progress in reducing its inventory of undelivered 787 and 737 aircraft. This development, reported in late April 2025, marks a turning point for the aerospace giant, which has faced substantial setbacks due to manufacturing flaws, supply chain disruptions, and regulatory scrutiny. The completion of the 787 rework and the ongoing reduction of stored aircraft signal Boeing’s commitment to stabilizing its production system and restoring profitability, though challenges remain as the company navigates a complex recovery.
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The 787 Dreamliner rework project, centered at Boeing’s Everett, Washington facility, addressed fuselage-join issues that emerged in 2020. These manufacturing defects, involving gaps between fuselage sections that failed to meet precise specifications, led to multiple delivery halts between 2020 and 2022, with only 14 Dreamliners delivered during that period. The rework process, described by Boeing as operating within “shadow factories,” diverted hundreds of mechanics from regular production, costing an estimated $6.3 billion in abnormal expenses by 2023. The final aircraft to undergo rework, a 787-10 built in December 2020, was completed in early 2025 and is now slated for delivery to TAAG Angola Airlines after repainting and interior modifications. This aircraft had previously served in Boeing’s ecoDemonstrator Explorer program, conducting long-distance test flights to optimize fuel efficiency. The closure of the 787 shadow factory has freed up critical manpower, with many mechanics now reassigned to support the 777 and 777X programs, bolstering Boeing’s widebody production capacity.
Alongside the rework completion, Boeing has made strides in clearing its inventory of undelivered aircraft. At the end of 2023, the company held 140 737 Max 8s and 50 787s, a stockpile accumulated due to production pauses and rework requirements. By the end of 2024, this inventory had been reduced to 55 737 Max 8s and 25 787s, and by April 2025, Boeing reported further progress, with approximately 30 737 Max 8s and 20 787s remaining. Notably, this inventory includes four 787s and 25 737 Max 8s originally destined for Chinese customers, which Boeing is now seeking to reallocate due to trade-related cancellations. The company anticipates completing the 737 Max rework by mid-2025, which will fully dismantle the remaining shadow factory and further normalize production.
Despite these achievements, Boeing faces ongoing hurdles. Parts shortages, particularly for heat exchangers and seat certifications, continue to delay deliveries of reworked aircraft, many of which require repainting and interior changes to accommodate new airline customers. Chief Financial Officer Brian West emphasized that while 787 production has risen to four aircraft per month, with plans to reach five by year-end, supply chain constraints remain a critical concern. Additionally, Boeing’s financial recovery hinges on delivering these aircraft efficiently, as each undelivered jet ties up capital and erodes profit margins. In its first quarter of 2025, Boeing reported a modest $31 million loss, a significant improvement driven by increased deliveries, underscoring the importance of clearing inventory. The completion of the 787 rework project and the reduction of stored aircraft reflect Boeing’s resilience amid a turbulent period marked by the 737 Max crashes, the COVID-19 pandemic’s impact on aviation, and heightened regulatory oversight. Posts on social media from aviation news outlets highlighted the industry’s optimism about Boeing’s progress, noting the potential for improved cash flow and production stability. However, Boeing’s path forward requires sustained focus on quality control and supply chain management to prevent future disruptions. As the company shifts its attention to new aircraft production and prepares for the certification of the 777X, this milestone offers a foundation for rebuilding trust with airlines, regulators, and investors, positioning Boeing to capitalize on the recovering global demand for widebody aircraft.