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Investing.com - Analysts from Bank of America (NYSE:BAC) (BofA) are forecasting Boeing (NYSE:BA) 737 deliveries to approach the levels seen in Q1 2023, while 787 deliveries are expected to fall behind due to a newly discovered issue.

According to Aero Analysis Partners/AIR (AAP/AIR), Boeing has delivered twelve 737s as of mid-June, surpassing the nine aircraft delivered during the same period last month. Production has also seen an increase with thirteen rollouts as of June 13th, and flight activity marking a 5% rise compared to the same period last year.

As a result, AAP/AIR forecasts that Boeing's 737 deliveries will range between 25-28 aircraft in June, exceeding the 19 737s delivered in May. If these numbers hold true, Q2 deliveries will approach the 66 MAXs delivered in Q1 2023.

However, despite the traditional quarter-end surge in production and deliveries, AAP/AIR expects FY24 output to fall below 300 units and deliveries to range between 300-330 aircraft.

Meanwhile, Boeing has recently disclosed a new issue in the 787s, involving the incorrect torque of over 900 fasteners per aircraft.

AAP/AIR data reveals that the rework is expected to take 5-9 days, and currently, four aircraft that were rolled out before June 2020 are under repair. However, it remains unclear if this issue only affects planes built prior to 2020, and whether the fasteners in question were installed by Boeing or Leonardo.

Given this new development, AAP/AIR anticipates deliveries to remain slow in the coming months.

BofA maintained a neutral rating on Boeing with a price objective of 200.

This content was originally published on http://Investing.com


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