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The chart below shows that June is the traditional period when new deliveries exceed 500 for the year. This year follows the tradition.
But there’s something to note: Is the momentum the same as in previous years? We need to recognize June 2024 is only ten days at this point. This next chart caught our attention that, perhaps, momentum has indeed slowed.
The breakdown helps to focus on the issue.
Delivery momentum loss looks real, and Boeing is the primary reason. The industry table shows that although the duopoly’s share remains dominant, it dropped below 90% YTD.
Note that Boeing is doing good business with freighters, which remains a weakness for Airbus. On the other hand, Airbus is doing better overall.
We hear anecdotal news that OEMs are struggling with the supply chain. The Great Retirement impact continues: there is a chronic shortage of inspectors (especially for IFE certifications), and seatmakers are falling behind. Moreover, Airbus customers using BFE must take delivery and figure out their seating. Boeing seems more flexible on this. There is also a chronic shortage of mechanics, and the problem led MHIRJ to build a training facility. The MHIRJ Academy offers eight weeks of paid training and a guaranteed full-time job upon completing the program.
