Boeing Shares Soar with November Delivery Report

Boeing's shares rose by 4.9% after the company announced its commercial jet delivery figures for November. The aerospace giant delivered 13 commercial jets during the month, a significant decline compared to the 56 planes delivered in the same month last year. This slight decrease followed 14 jet deliveries in the previous month and coincided with a seven-week strike that ended on November 5.

The company resumed production of its best-selling model, the 737 MAX, following a reported halt last week. Boeing aims to increase the production of the 737 to 38 units per month in order to boost revenue after a significant cash loss in the first three quarters of the year. This effort to ramp up production is taking place under strict scrutiny from the U.S. Federal Aviation Administration, especially following an incident in January where a door plug ejected during the flight of an Alaska Airlines 737 MAX 9.

Boeing is also preparing to restart production of other models, including the 767, 777, and 777X, at its Everett facility in the coming days. Production of the Boeing 787 in South Carolina continued without disruption from the strike.

The company has adopted a cautious approach to restarting operations, emphasizing quality, safety, and employee training, which was reflected in the low delivery figures for November. Deliveries for the month included nine 737s, two 777 freighters, and two 787-9s. United Airlines was among the companies that received three aircraft, consisting of two 737 MAX and one 787.

In contrast, after the last strike in November 2008, Boeing delivered only four planes. For November, the company reported 49 gross orders but faced 14 cancellations, resulting in 34 orders for the 737 and 15 orders for the 767 as part of the U.S. Air Force's KC-46 program. The German company TUI canceled 14 orders in favor of leasing from BOC Aviation, leading to a net gain of 20 new 737 MAX orders for Boeing.

So far this year, Boeing has received 427 gross orders and 370 net orders, factoring in cancellations and conversions. Adjusted for accounting standards, net orders reach 191. In comparison, Boeing's European rival Airbus reported over 80 jet deliveries in November earlier this month.