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Boeing Struggling To Shift Sentiment As 787 Dreamliner Productions Slow

Analyst Team trader
Updated 23 Apr 2024

After a 2024 that has delivered not much but turbulence for Boeing shareholders, the wait for positive news that could help shift the tide of sentiment goes on.

In a recent disclosure, Boeing Co. has projected a slower ramp-up in the production and delivery of its 787 widebody jets, a setback attributed to the ongoing shortages from suppliers. Boeing's 787 Dreamliner, an aircraft celebrated for its fuel efficiency and technological advancements, has been a cornerstone in the company's widebody market offering.

Scott Stocker, the 787 vice president and general manager, reportedly conveyed the unwelcome news in a memo to the employees at Boeing's South Carolina facility. Stocker highlighted that the difficulties arising from procuring certain parts have compelled the organisation to adjust its production expectations. Despite these headwinds, Boeing remains committed to gradually enhancing production rates to satisfy the robust demand for widebody aircraft.

In the eyes of regulatory bodies, Boeing stands under close scrutiny amid these supply chain hurdles. The Federal Aviation Administration (FAA) is particularly attentive to the aerospace giant's challenges in securing the needed components essential for keeping up with the previously projected pace of Dreamliner production.


Boeing's operational challenges are not confined to the 787 program alone. The company has been embroiled in concern over the manufacturing processes of its 777 and 787 widebody jets, following allegations by Boeing engineer Sam Salehpour regarding the safety of the 787 Dreamliner.

Moreover, the production of Boeing’s 737 MAX in its Washington state facility is undergoing significant turbulence, due not only to supplier shortages but also increased regulatory inspections and delays in assembly line progression. Observers note that the 737 MAX, another critical product line for Boeing, has had a complicated history marred by two fatal crashes and a prolonged grounding that drew widespread attention to Boeing's safety culture and regulatory compliance.

Boeing's handling of these crises is further complicated by whistleblower complaints. In the past three years alone, the company has faced 32 such instances, with issues ranging from safety concerns to internal investigations into alleged retaliations against those who have come forth.

As the market looks forward to Boeing's first-quarter earnings report, stakeholders and analysts alike anticipate insights on whether the company can surmount the current challenges and potentially outshine the recent scandals that have tainted its reputation.

Amid this unfolding scenario, Boeing's stock has taken a fall in 2024, losing almost 1/3rd of its value. A little resilience was shown as NYSE:BA ended at $170.48 on Monday, marking a slight uptick of 0.39% from the previous close.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.