Analysts at Bank of America see positive signs for Boeing (NYSE:) 737 deliveries, forecasting numbers close to first-quarter levels.
“AAP/AIR maintains its forecast of 25-28,737 deliveries for June (up from 19 in May),” BofA said, citing data from Aero Analysis Partners/AIR (AAP/AIR).
If achieved, this would bring 2nd quarter deliveries closer to the 66 MAX aircraft delivered in 1Q 2023. However, BofA warns that the June numbers could be inflated by higher deliveries later in the quarter, making July a truer test for Boeing. ability to maintain higher rates.
Production is also showing improvement, with Boeing producing 22 737s this month. BofA admits some deliveries may be delayed from previous ones, but with six completion slots on the final assembly line, they see production rates in the “mid-twenties” , which is higher than the previous “low twenties”.
The picture for 787 is less rosy. BofA highlights the sluggish pace, with “only one delivery so far in June” and no deliveries last week. There are concerns about a newly discovered problem with the fasteners, although Boeing says it is not a safety issue.
“Chief Engineer Howard McKenzie explained that the problem was not due to an incorrect tightening level, but to the incorrect method used,” BofA said. Despite these issues, BofA maintains a neutral rating on Boeing.