Boeing delays first 777X delivery to 2027, raising cost concerns: Report

Core Viewpoint - Boeing is facing significant delays in the delivery of its 777X jet, with expectations now set for early 2027, which is six years later than initially planned when the program was launched in 2013 [4][5]. Group 1: Delivery Delays - The first delivery of the 777X jet is now expected in early 2027, a shift from the previous expectation of 2026 [5]. - Deutsche Lufthansa AG, the launch customer for the 777X, is adjusting its fleet plans accordingly and will not include the 777X until 2027 [5]. Group 2: Financial Implications - Analysts predict that Boeing will announce a charge related to the delay in its third-quarter earnings report, estimated to be between $1 billion and $4 billion [2]. - The company has already incurred over $10 billion in charges related to the 777X program [4]. - Following the acknowledgment of new certification difficulties, investment analysts have lowered their free cash flow projections for 2026 [5]. Group 3: Certification Challenges - Boeing CEO Kelly Ortberg indicated that the company is behind schedule in certifying the 777X, citing a "mountain of work" that remains [5]. - Despite the delays, Ortberg stated that no new technical problems have been identified, and he did not suggest any further delays to the first delivery [5]. Group 4: Analyst Expectations - RBC Capital Markets aerospace analyst Ken Herbert expects that deliveries of the 777X will commence in the second half of 2027 [5].