Boeing powers ahead as MAX 8 inventory thins

As we approach the end of a short month, Boeing’s deliveries are powering ahead

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The delivery rate is important, but so is the breakdown. Airbus is also delivering well. Its A220 is way ahead of Embraer’s E2 models. In our view, the A321NX remains Airbus’ most valuable program.  For Boeing, the key item is the MAX 8.  Boeing is clearing out its inventory.  As we explained last week, moving these aircraft out is essential to the program’s recovery.

Inventory shrink

To explain the importance of clearing the inventory, let’s look at our delivery day metric. The chart shows a spike at Boeing as older aircraft are delivered.  A cursory glance gives the impression that things are not improving at Boeing.