Boeing(BA) The Motley Fool·2025-02-22 16:21Core Viewpoint - Boeing is facing mixed news regarding its operations, particularly concerning delays in key programs, which may impact investor confidence and the company's recovery trajectory [1]. Group 1: Air Force One Delays - The Air Force One program is one of four problematic fixed-price development programs at Boeing Defense, Space & Security, alongside the KC-46 refueling tanker, T-7 training aircraft, and MQ-25 refueling drone [2]. - Although these programs account for only 15% of BDS revenue, they have resulted in multibillion-dollar losses and charges in recent years [3]. - If Boeing had to choose a program to delay, it would likely prefer Air Force One due to potentially greater long-term demand for the other aircraft types [3]. Group 2: Boeing 777X Timeline - Deliveries of the two Boeing VC-25B planes for Air Force One could be delayed until 2029, following previous delays to 2027 or 2028 [4]. - Emirates, a key customer for the Boeing 777X, now expects deliveries of its 205 ordered jets to begin no sooner than Q2 2027, possibly extending to 2028 [4]. - The 777X was initially expected to enter service in 2020, and delays could lead to compensation payments to airlines and negatively impact Boeing's cash position [6][7]. Group 3: 737 MAX Production Outlook - Safran's CEO expressed confidence that Boeing will achieve a delivery rate of 38 per month for the 737 MAX in H1 2025 and 42 per month by year-end [4]. - GE's CEO anticipates a 15% to 20% increase in LEAP engine production, aligning with Boeing's production plans [8]. - Achieving a delivery rate of 42 per month for the 737 MAX would allow for more optimistic assumptions regarding Boeing Commercial Airplanes' profitability and cash flow, enhancing the stock's near-term prospects [11].