BofA: Boeing 737’s deliveries could be close to 1Q levels, but 787’s lag behind

Bank of America analysts see positive signs for Boeing (NYSE:) 737 deliveries, forecasting figures close to 1st quarter levels.

“AAP/AIR maintains its forecast of 25-28 737 deliveries for June (compared to 19 in May),” says BofA, citing data from Aero Analysis Partners/AIR (AAP/AIR).

If achieved, this would bring 2nd quarter deliveries close to the 66 MAXs delivered in the 1st quarter of 2023. However, BofA cautions that June numbers can be inflated due to end-of-quarter pushes, and July will be a truer test of Boeing’s ability to sustain higher rates.

Production also shows improvement, with Boeing rolling out 22 737s this month. BofA acknowledges that some may be delayed deliveries from earlier, but with six completion slots on the final assembly line, they see production rates in the “mid-twenties,” an increase from the previous “low-twenties.”

The picture is less rosy for the 787. BofA highlights the sluggish pace, with “only one delivery so far in June” and none in the past week. There are concerns about a recently discovered fastener issue, although Boeing maintains it’s not a safety problem.

“Chief Engineer Howard McKenzie clarified that the issue was not due to an improper level of torquing but rather the incorrect method used,” reports BofA. Despite these challenges, BofA maintains a Neutral rating for Boeing.