Boeing said on Tuesday it delivered 29 planes in March, less than half the 64 it delivered in the same month last year, as 737 MAX production slumps due to increased quality control and audits by regulators. .
The aircraft maker said it is producing fewer MAX jets to improve manufacturing quality after the mid-air explosion of a door on a 737 MAX 9 jet on Jan. 5 put it under greater scrutiny from regulators.
Reuters reported earlier this month that Boeing’s monthly production rate dropped to single digits in late March, well below the Federal Aviation Administration’s (FAA)-imposed limit of 38 jets per month.
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During the first three months of 2024, Boeing delivered 83 planes to customers, including 66 MAX jets, the company said, down from the total of 130 plane deliveries during the first quarter of 2023.
“We’re going to deliberately slow down to get this right,” Boeing Chief Financial Officer Brian West said at a Bank of America conference last month. “We were the ones who made the decision to restrict the 737 program fees to less than 38 per month until we felt we were ready.”
Boeing said it delivered eight MAX jets to Chinese companies in March. China resumed deliveries of the MAX in January.
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Boeing’s European rival Airbus delivered 142 aircraft in the first quarter of 2024, a 12% increase over the same period last year, Reuters reported earlier this month, citing industry sources.
Boeing also said on Tuesday it received 113 new orders in March, driven by a deal for 85 737 MAX 10 jets from American Airlines, which also ordered planes from Airbus and Embraer. This brings Boeing’s total gross orders this year to 131.
After removing cancellations and conversions, Boeing has recorded a net total of 126 orders since the beginning of 2024. With accounting adjustments to reflect the quality of the backlog, the company has recorded adjusted net orders of 125 planes so far this year.