Boeing Delays 777X Launch to 2027, Faces Billion-Dollar Charges

Boeing’s plans for the long-awaited 777X widebody jet have hit a significant roadblock, with the aircraft now expected to enter commercial service in early 2027. This timeline marks a delay of one full year from previous estimates and represents a setback of nearly seven years from the original schedule.

According to Bloomberg, sources familiar with the situation indicate that major airlines such as Deutsche Lufthansa AG and Emirates will not receive their 777X deliveries in 2026 as initially planned. The airline industry is reacting cautiously to the delay, with Lufthansa, the launch customer for the 777X, reportedly adjusting its fleet plans to exclude the new model until 2027. An anonymous source close to the airline confirmed these changes, highlighting the shifting landscape for potential deliveries.

The anticipated delay is expected to have serious financial implications for Boeing. Analyst Sheila Kahyaoglu from Jefferies predicts that the aerospace giant could face charges of up to $4 billion as a result of the postponement. This figure encompasses not just lost revenue from the anticipated delivery of 18 jets in 2026 but also customer concessions and related expenses. Kahyaoglu noted that the certification delays for the 777X will likely become a key priority for Boeing, given the significant cash flow implications involved.

In a separate analysis, Ken Herbert from RBC anticipates that the 777X will begin its entry into service in the latter half of 2027. He estimates a potential charge of around $2.5 billion linked to the delay. The challenges facing Boeing are compounded by the fact that multiple airlines, including Qatar Airways, Etihad Airways, Cathay Pacific, All Nippon Airways, and British Airways, are all awaiting deliveries of this new aircraft.

During a recent conference organized by Morgan Stanley, Boeing CEO Kelly Ortberg acknowledged the ongoing struggles with the 777X certification process, indicating that the company is grappling with numerous operational challenges. This new jet is positioned as the successor to the now-out-of-production 747 jumbo, underscoring its importance in Boeing’s future lineup.

As the news unfolds, Boeing shares remained stable during premarket trading in New York, with a year-to-date increase of 23% as of the latest close. However, the stock has been relatively stagnant over the past five years, particularly following the dual crises of the 737 Max accidents and the impact of the COVID-19 pandemic.

The implications of these delays extend beyond Boeing’s financial health. The company faces ongoing scrutiny regarding its ability to manage production schedules and deliver on promises to key customers. As the aviation industry continues to navigate a complex recovery from recent global disruptions, the performance of Boeing’s 777X will be closely watched by industry analysts and stakeholders alike.