Boeing Lowers 737 Max Delivery Forecast Due to Fuselage Issue, Reports $1.6B Loss for Third Quarter

Quality issues prompt Boeing to reduce its 737 Max delivery estimate from 400-450 to 375-400 planes this year, while its Defense, Space and Security division underperforms. Subsequent inspections and repairs due to a potential fuselage problem by supplier Spirit AeroSystems lead to a bigger-than-expected Q3 loss.

Boeing has lowered its 737 Max delivery forecast from 400-450 to 375-400 planes for 2023 due to quality issues found by supplier Spirit AeroSystems that led to inspections and necessary fuselage repairs.
These quality issues led to Boeing reporting a $1.6 billion loss in the third quarter of 2023, larger than anticipated, owing to slower deliveries and deterioration in its Defense, Space and Security division's performance.
Despite the loss and lowered delivery estimate, Boeing CEO Dave Calhoun insists the company is on track to meet its financial goals, attributing this to the strong demand for aircraft following the COVID-19 slump and Boeing's efforts to stabilize its supply chain and improve its operational performance.
Although there is no immediate risk to safety, the quality issues have caused a delay in 737 deliveries. However, Boeing still plans to increase supplier production rates and anticipates final assembly transition to 38 per month by the year-end.
The setbacks and quality issues have resulted in a fall in the shares of both Boeing and Spirit AeroSystems. Boeing shares dropped over 2% on Wednesday, whereas Spirit AeroSystems' shares also experienced a decline.