Asahi shares mark weekly slide after cyberattack halts production
Investing.com -- Boeing’s 777X is now expected to enter commercial service in early 2027 instead of next year, Bloomberg News reported, citing people familiar with the matter.
Analysts estimate the delay could trigger a non-cash accounting charge of between $2.5 billion and $4 billion, though Boeing has not disclosed specifics, the report said. The aircraft is already six years behind schedule and remains central to Boeing’s long-haul market ambitions.
Lufthansa, the launch customer, has shifted its fleet planning to exclude the 777X until 2027, the report said.
Emirates, the largest buyer, has also grown more cautious and is preparing for entry into service no earlier than 2027.
Executives have reportedly been meeting major investors to reassure them that the financial impact will be spread across the entire jet program.
The setback comes from slower-than-expected progress in certification flights with Federal Aviation Administration (FAA) pilots and inspectors, rather than new technical issues.
Last month, Boeing CEO Kelly Ortberg told a Morgan Stanley conference that certification was facing delays due to a “mountain of work.”
“As you know, even a minor schedule delay on the 777 program has a pretty big financial impact because we’re in a reach-forward loss situation,” Ortberg said. “So we’re looking at that real hard.”
The 777X program has already accumulated more than $11 billion in overruns, with intensified FAA scrutiny following the 737 Max crashes.
The program is in a reach-forward loss position, meaning it won’t recoup development costs across the first 500 aircraft built, Bloomberg’s report said. Any additional costs must be booked immediately as charges to earnings.
Customers including Emirates, Cathay Pacific, and Qatar Airways are still awaiting deliveries of the jet, designed as Boeing’s successor to the retired 747 jumbo.
Boeing executives are expected to address the latest schedule slip and its financial implications when reporting earnings on Oct. 29.