Boeing's strike is over. Its delivery problems aren't
A week after Boeing machinists ended an almost two-month strike, the aerospace manufacturer said Tuesday that October saw it deliver the smallest number of planes in years.
Boeing (BA) delivered only 14 commercial airplanes last month, including to Southwest Airlines (LUV) and United Airlines (UAL) — less than half of the 34 jets it delivered to customers during the same period last year, and its fewest since November 2020. Nine of the planes delivered in October were 737 Max jets. The company had 63 orders in October, according to data on Boeing’s website.
The disclosure comes as Boeing prepares to move forward with layoffs that will cut 10% of the company’s workforce.
Workers who were not part of the strike carried out the company’s deliveries, a Boeing spokesperson told CNBC (CMCSA). The spokesperson added that the company is focused on potential hazards, duties, and safety requirements, and ensuring training qualifications are up-to-date as machinists return to work.
Boeing stock was down about 2.8% on Tuesday afternoon. The shares are down by 42.5% so far this year.
As the machinists return to factories this week, Boeing said a full restart will take weeks. The company also said Tuesday that it “forecasts continued long-term growth” for air cargo traffic.
Earlier this month, Boeing machinists concluded their strike and ratified a union contract giving them a 38% raise. The International Association of Machinists and Aerospace Workers said 59% of Boeing machinists voted to end the strike.
The contract was the third one negotiated between Boeing and the union. Boeing had initially proposed a 25% raise, which was almost unanimously voted down by workers, leading to the strike.
Before the strike ended, Boeing announced it was raising $19 billion in a stock offering.
“Some of our and our suppliers’ workforces are represented by labor unions,” the company said in a regulatory filing last month. “Work stoppages by our employees are currently adversely affecting our business, financial condition, results of operations and/or cash flows. Future work stoppages by our or our suppliers’ employees could also adversely impact our business.”
