Boeing had an excellent January, the best delivery month in several years. In January, Boeing beat Airbus in deliveries. The issue is what comes next. Several analysts are asking questions that we discuss. Customers, though, seem pleased with the progress. Boeing's 2025 will be loaded in the second half. MAX 8 deliveries are faster than before; yesterday (2/12/25), we saw another ex-Chinese MAX 8 go to Air India Express. The inventory is being run down, creating the possibility of a virtuous cycle. The grounding and subsequent delivery delays caused a vicious cycle of supply chain breaks and labor distress. But now, with airplanes being delivered, Boeing can close down "ghost factories" and bring those employees back to Renton and Everett. These people are problem solvers who had to perform far away from the FAL. This experience has almost certainly made them among the most experienced Boeing has. As 2025 progresses, Boeing will likely bump against the FAA limit of 38 MAXs per month sooner rather than later. With the improved FAL skillset, the KPIs will be met. All of these enable the virtuous cycle to kick in. That's the good news. The bad news is that the 777X is way behind schedule, leading to serious questions about the program's long-term viability. What does breakeven look like? Are we seeing another 787-like situation? Plus, the MAX 7 and MAX 10 certifications are running late. However, Boeing has the X-66A, which will be a helpful guide for replacing the MAX. There are many moving parts here. Even with the "bad news," Boeing looks to be better placed than in years. https://youtu.be/g4W_mD9YRXw
