Boeing Struggles After a Dismal 2024

Boeing ended 2024 with some glimmers of hope, recording 142 gross orders in December, the year’s strongest sales month. This uptick was largely driven by demand for the troubled 737 Max, despite lingering reputational damage from a high-profile incident involving a blown door plug on an Alaska Airlines flight earlier in the year. However, the December performance paled in comparison to the record 371 orders secured in the same month of 2023, highlighting a monstrous decline in momentum.

For the full year, Boeing tallied 569 gross orders, marking a sharp 60% drop from its 2023 total. Deliveries, a critical revenue driver since payments are largely tied to final handovers, also plummeted. The company managed only 30 deliveries in December, resulting in a yearly total of 348 planes—34% fewer than in 2023. The fourth quarter was particularly painful, with deliveries tumbling 64% compared to the same period the previous year.

Much of this decline can be attributed to a crippling strike by 33,000 union workers that began on September 13 and wasn’t fully resolved until early December. The disruption effectively halted production lines for nearly three months, exacerbating Boeing’s challenges in ramping up output.

What Does This Mean for Me?

The financial implications don't make pretty viewing. With deliveries severely curtailed, Boeing’s cash flow remains under immense pressure. The company has already warned of sustained losses through 2025, with its fourth-quarter results expected to confirm another major hit. Boeing’s ability to recover will hinge on stabilizing production and restoring confidence among customers and investors in the coming months. For now, investors can expect continued turbulence.