Another sign of Boeing’s improving MAX 8 inventory

We have been saying things are turning around at Boeing for some time. Today, we want to share another sign. Readers know that our approach is to rely on the data. Opinions are fine, but data-backed views are best. We are very early in the month, and here's the sign of what happens as the MAX 8 inventory clears out. We are not alone in this view. [caption id="attachment_91925" align="aligncenter" width="606"] AirInsight[/caption] To clarify, the period is three days and involves only two aircraft. But take a look at that decline in average days. There are still some aircraft in the inventory that need to be moved. By the way, note also the 787 number, and that's for one airplane. Although the data is limited, it reveals what happens when new builds are delivered as intended. As Boeing's focus moves from inventory clearance to new production, we expect to see more significant declines in delivery days. By comparison, the A320neo average delivery days for 2025 is 28. That means 33 is right on target from now on. As that inventory is moved to China, we should expect to see MAX 8s produced and delivered at competitive rates. This will create a virtuous cycle for Boeing, its customers, and the supply chain, reversing the trend that has prevailed for several years among these three parties. One more data point to consider. To date, Airbus has delivered 81 A320neos compared to Boeing's 173 MAX 8s. Sure, the market has upsized. Airbus delivered 139 A321neos compared to Boeing's 30 MAX 9s. Note also that Airbus' average delivery time for these A321s is 22 days, compared to 32 days for the Boeing MAX 9. Airbus is ahead in many ways, with the most in-demand single aisle. Boeing, in our view, is well on its comeback path. So, Happy Fourth to Boeing.

No results