Boeing is currently experiencing significant financial strain, burning through more than $1 billion in cash each month as it struggles with parts shortages, leaving dozens of new planes grounded and incomplete.
Hundreds of jets awaiting completion
The aerospace giant has approximately 200 nearly finished jets scattered across airfields, outside manufacturing plants, and even in employee parking lots, according to a report by the Wall Street Journal. These planes are missing various components, ranging from interior parts to engines, while some are fully assembled and simply awaiting delivery to China.
Supply chain issues persist post-pandemic
The delays are largely attributed to lingering supply-chain shortages that have persisted since the pandemic. For instance, suppliers of airplane seats have been unable to meet demand due to material shortages, and there has also been a scarcity of temperature-regulating parts.
Financial impact and industry challenges
With 200 planes not in operation, Boeing is incurring losses of approximately $1 billion per month. This financial hit adds to the challenges for an airline manufacturer already reeling from a series of safety issues that have damaged its reputation and financial stability.
“It kind of begs the question: When are you going to deliver these things,” commented Ron Epstein, an aerospace analyst at Bank of America. “They can only sit around so long before you have to do something with them.”
Boeing’s production has slowed since safety concerns prompted federal investigations, which might ironically be beneficial by reducing the number of planes awaiting final parts. Compared to the same period last year, Boeing has delivered about 90 fewer planes this year.
Efforts to alleviate the backlog
Boeing officials are actively working to address the backlog of parked planes. The company stated that the accumulation of jets has not caused a slowdown in production due to space constraints.
“As we have delivered hundreds of 737s and dozens of 787s from inventory in recent years, we have reduced the parking space needed at several sites,” Boeing told the Wall Street Journal. The company remains focused on clearing the inventory and completing the grounded jets, striving to mitigate the financial and operational impacts of these supply-chain challenges.