Premium #219 – Boeing’s 787 – Breaking through Headwinds

News reports out last week suggested that Boeing’s 787 sales have slowed, and the company may be facing more financial headwinds as a result.  But before you buy into doom and gloom headlines, let’s take a look at some data points underlying the program.

The 787 program is already in its 12^th year.  The aircraft has sold at a faster rate than any previous widebody – so it is already a sales success. The overall market took a major dip in 1Q16, and the market regularly moves up and down cyclically.  Any dips are cyclical and not attributable to the aircraft program itself.  Plus, with a strong backlog, airlines that would have to wait six to seven years for a delivery may prefer to wait until backlog comes down before placing orders.