Boeing takes $5 billion hit as 777X jet delayed

Boeing pushed back the first delivery of its long-delayed 777X jet to 2027 and took a bigger-than-expected $5 billion charge on Wednesday, in another setback for the US aerospace company.

- DAN CATCHPOLE SHIVANSH TIWARY ALLISON LAMPERT

The 777X is critical to Boeing’s long-term widebody strategy, previously dominated by its 747 and 777 jets. But repeated certification and production delays have pushed back deliveries by years, piling up charges of over $15 billion and straining the company’s finances, while giving an opening to rival Airbus’ competing A350 as international travel surges.

Last month, CEO Kelly Ortberg said the company was behind schedule in certifying the jet, saying a “mountain of work” needed to be done. The company has conducted over 4,000 flight test hours, more than twice the hours of a typical project, Mr Ortberg said during a call on Wednesday with analysts, adding, “We still have a significant portion of the flight test certification programme to go.”

Analysts had anticipated a sizeable 777X project charge, which includes penalties owed to customers for late deliveries.

Boeing shares fell 4%.

Richard Aboulafia, managing director of AeroDynamic Advisory, said the charge was more than the $2 billion to $4 billion he expected. While he does not expect the charge to be financially crippling to debt-laden Boeing, “it does raise questions about any more surprises to come.”