Following a year marred by safety incidents, labor strikes, and general turmoil, Boeing will look forward to 2025 as a year to reset itself.
Following the machinists’ strike in September, the company resumed its 737 MAX production just in time for the end of the year. With a new CEO, Kelly Ortberg, at the helm, the planemaker will likely be hoping for a better start to 2025.
We take a look at what to expect from Boeing in 2025 and the milestones the company hopes to achieve in the new year.
Boeing’s 2025 will be about restoring trust and reputation
While the Alaska Airlines 737 MAX door plug blowout magnified the problems at Boeing, the company was having issues well before that incident. Production quality has been a sore subject for the planemaker for some years, with questions around the 787 Dreamliner quality as well as the 737 MAX.
2024 has seen Boeing working hard to get its supply chain in shape, including buying back Spirit Aerosystems, one of the major suppliers for the MAX. However, Boeing remains under scrutiny from the FAA and is not allowed to raise its production rate for the 737 until the regulator is satisfied with its quality control.
In 2025, we can expect to see Boeing adopting more transparency and open communication about safety improvements. It will continue to engage with the FAA and its customers, as well as global regulators, to maintain compliance and rebuild trust.
Alongside this, Boeing needs to rebuild the trust of its workforce following layoffs and strikes. Adopting a more transparent culture of incident reporting, where whistleblowers are rewarded, not punished, will help with this.
Boeing will be looking for financial stability in 2025
The combination of quality control issues and labor disputes has left Boeing in a tight financial position. In October 2024, the company reported $5 billion in losses for the third quarter, and announced plans to trim its workforce by 10%, cutting around 17,000 jobs.
Boeing Machinists End 53-Day Strike with 38 Percent Raise – https://t.co/MJUjiUSnUm pic.twitter.com/ZX5jaV7lqd
— Labor Notes (@labornotes) November 8, 2024
The company has said in the past that it needs to be producing the 737 MAX at a rate of 38 aircraft a month in order to stop bleeding cash. However, even without the current FAA cap, the planemaker didn’t get close to that number in 2024. As things settle, it will be chasing that 38-a-month goal, but in a way that doesn’t impact its focus on quality and safety.
Part of the quality control efforts will undoubtedly bring some streamlining, which will be necessary if Boeing is to weather the job cuts it has planned. It will be keen to get its backlogged aircraft out of the door to balance the books, and may well be chasing new defense contracts in 2025, given the current geopolitical environment.
What we won’t see in 2025 is the delivery of the first 777X. Boeing said in October 2024 that it was again pushing back the delivery timeline to 2026, frustrating its customers and removing an important revenue stream from the company for another year.
Boeing’s biggest challenges in 2025
Although there’s a lot to be positive about for Boeing in 2025, there are still challenges to overcome. In particular, the company will still struggle with:
Supply chain issues: Although we’re almost five years out of the pandemic now, the knock-on effect of the shutdown combined with raw material shortages and shipping issues means the supply chain is still not robust enough. Delays in the arrival of aircraft components are part of the reason both Airbus and Boeing have an unusually high number of undelivered aircraft sitting at their facilities.
Competition from Airbus: With no 777X at the top of the range and the MAX 10 and 7 still awaiting certification, the gaps in Boeing’s portfolio have opened the door for Airbus. This has been seen in the high number of orders for the A350 and the incredible success of the A321neo. Boeing will be keen to close those gaps to avoid Airbus getting too far ahead.
Regulatory scrutiny: The FAA is still watching closely, and Boeing needs to demonstrate it has made all the necessary changes so it can rebuild that trust. Only then will it be able to raise its production rate and meet the demands of the future aerospace market.
For the past few years, it’s felt like Boeing’s hit rock bottom, but then, astoundingly, it’s continued to dig down further. From the MAX grounding to the delays with the 777X, it certainly seems like the only way for Boeing in 2025 is up.
