Boeing (NYSE:BA)'s stock experienced a 4.9% increase as the company released its November commercial jet delivery figures. The aerospace giant handed over 13 commercial jets during the month, a significant decrease from the 56 jetliners delivered in the same month last year. This slight dip comes after a previous month's delivery of 14 jets, coinciding with a seven-week strike that concluded on November 5.
The company has recently resumed production of the 737 MAX, its top-selling model, after a halt reported last week. Boeing aims to ramp up the production of the 737 to 38 units per month, seeking to recuperate revenue following substantial cash burn in the first three quarters of the year. This push for increased production comes amidst rigorous scrutiny from the U.S. Federal Aviation Administration, particularly after an incident in January where a door plug was ejected from an Alaska Airlines 737 MAX 9 mid-flight.
Boeing is also preparing to restart the production of other models, including the 767, 777, and 777X, at its Everett facility in the upcoming days. The production of the Boeing 787 in South Carolina continued uninterrupted by the strike.
The company has adopted a cautious stance towards resuming operations, emphasizing quality, safety, and employee training, which is reflected in the lower delivery figures for November. The month's deliveries consisted of nine 737s, two 777 freighters, and two 787-9s. United Airlines was among the recipients, taking three aircraft, including two 737 MAXes and one 787.
In contrast, following the end of the last strike in November 2008, Boeing delivered only four aircraft. For November, the company reported 49 gross orders but faced 14 cancellations, leading to 34 orders for 737s and 15 for 767s intended for the U.S. Air Force's KC-46 program. TUI (LON:TUIT), a German company, canceled 14 orders, choosing to lease from BOC Aviation instead, which resulted in a net gain of 20 new 737 MAX orders for Boeing.
To date this year, Boeing has secured 427 gross orders and 370 net orders, taking into account cancellations and conversions. When adjusted for accounting standards, the net orders stand at 191. In comparison, Airbus, Boeing's European competitor, delivered over 80 jets in November, as reported earlier this month.
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