Boeing Faces Turbulence: 777X Delayed to 2027 Amid Financial Strain

Boeing has again delayed its 777X jet program, now pushing the first delivery to 2027, and has taken a $5 billion charge, raising concerns among analysts and investors. The troubled U.S. aerospace firm continues to grapple with certification and production delays, accumulating over $15 billion in costs to date. Rival Airbus is capitalizing on these setbacks as demand for wide-body jets increases with international travel growth.

CEO Kelly Ortberg acknowledged that Boeing is behind schedule in certifying the aircraft, citing substantial remaining flight test hours. The company has surpassed 4,000 test hours, double the usual for such programs. Boeing's challenges are exacerbated by supply chain issues and delays awaiting a critical certification milestone.

Shares in Boeing declined by 4% after analysts, anticipating a notable charge, were still surprised by its magnitude, which exceeded expectations. Despite financial hurdles, Boeing's cash flow turned positive for the first time since 2023, with a revenue increase of 30% to $23.27 billion last quarter, outperforming predictions.