• 787-8 Dreamliner
    Boeing
    Stock Code:
    BA
    Date Founded:
    1916-07-15
    CEO:
    Dave Calhoun
    Headquarters Location:
    Chicago, USA
    Key Product Lines:
    Boeing 737, Boeing 747, Boeing 757, Boeing 767, Boeing 777, Boeing 787
    Business Type:
    Planemaker

US planemaking juggernaut Boeing released its first-quarter financial results for 2022 to the world today. Among several striking figures present in the report is the amount of money that it has lost due to the ongoing issues concerning its 787 'Dreamliner' family. Indeed, this sum has now amounted to a hefty total of $2 billion.

Expensive problems

Due to issues with the 787 program, as covered extensively by Simple Flying in recent months, Boeing has had to put Dreamliner production and deliveries more or less on hold. Rather than building the aircraft and getting them to their customers, the company must first solve the issues that have put it in this position.

The problems largely pertain to quality control and production process, and have resulted in the FAA stepping in to get involved. The US government body has revoked Boeing's self-certification rights for the aircraft, and is instead going over each undelivered 787 in minute detail itself. The manufacturer estimates that these delays will result in high supplementary costs for the program, stating today that:

"The company continues to anticipate 787 abnormal costs of approximately $2 billion, with most being incurred by the end of 2023, including $312 million recorded in the quarter."

K66651-04
Dreamliner deliveries have now been on hold for almost a year. Photo: Boeing

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Looking to get back on track

Despite the difficulties and immense costs relating to the 787's production issues, Boeing has begun taking steps in the right direction. Indeed, it noted in its accompanying statement today that "the company has submitted the certification plan to the FAA." Boeing adds that "rework has been completed on the initial airplanes," marking a key milestone on the road to normality.

This has allowed the manufacturer to start considering how it might like to get deliveries of the aircraft up and running again. Indeed, Simple Flying reported last month that it was in talks with suppliers as it looked to deliver as many as seven per month by late-2023. Looking ahead, Boeing explained in its statement today:

"The company continues to work closely with the FAA on timing of resuming deliveries. The program is producing at a very low rate and will continue to do so until deliveries resume, with an expected gradual return to five per month over time."

Boeing 787
Boeing expects production to increase once it can start clearing its delivery backlog. Photo: Boeing

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A difficult situation for airlines

While Boeing itself is bearing the brunt of the delays to the program, its impact on customer airlines for the type also mustn't be overlooked. For example, the lack of deliveries may potentially force Indian carrier Vistara, which has four 787s on order, to lease widebodies to cover the lost capacity. Needless to say, all parties involved will be hoping for a swift resolution and a return to normal service.

What do you make of the delays to Boeing's 787 program? Are you surprised to see that it has made such a significant loss as a result? Let us know your thoughts in the comments.