Facepalm: Boeing's highly anticipated 777X jet is facing another delay, now pushed back to 2026 – a significant six-year postponement from its original 2020 target. CEO Kelly Ortberg cited a combination of development challenges, testing setbacks, and an ongoing labor strike as the primary reasons for keeping the aircraft grounded.
"On the 777X program, the challenges we have faced in development, as well as from the flight test pause and ongoing work stoppage, will delay our program timeline. We have notified customers that we now expect first delivery in 2026," noted the company in a statement.
Boeing's 777X is designed to be the largest twin-engine jumbo jet in the industry, capable of carrying around 400 passengers. However, with the latest delay, airlines are growing increasingly frustrated. Major carriers like Dubai's Emirates have begun voicing doubts about Boeing's ability to meet any delivery timeline.
In addition to the 777X delays, Ortberg also announced that Boeing will cease production of its 767 freighter line in 2027 after completing current orders. This decision leaves a gap in Boeing's mid-size cargo offerings, potentially giving European competitor Airbus an uncontested market advantage.
It's worth noting that Airbus is also grappling with delays, admitting in July that supply chain "bottlenecks" have slowed order fulfillment.
However, Boeing faces a much broader array of issues. Ortberg has warned of "substantial new losses" in the company's defense and space divisions this quarter, attributing them to challenges with fixed-price contracts and the impact of ongoing worker strikes.
In a bid to stop the financial bleeding, Boeing plans to cut its workforce by a staggering 17,000 employees – roughly 10 percent of its total headcount. Ortberg described the move as a "reset" to align with the company's financial realities.
The layoffs come amid a nearly month-long strike by 33,000 Boeing workers, who are demanding 40 percent wage increases over four years. With labor relations at such a low point, a quick resolution seems unlikely.
Adding to Boeing's woes is the continued trouble with its Starliner space capsule. The high-profile failures that left NASA astronauts Sunita Williams and Butch Wilmore stranded aboard the ISS for months have further dampened confidence in Boeing's space ambitions, making new business in that sector even harder to secure.
