Boeing has revealed fixes to the 787 Dreamliner are expected to cost the company around $1 billion. In its third-quarter results published today, Boeing chalked up $183 million in losses due to 787 complications for that quarter alone and noted its production rate is currently set at two planes per month.
787 issues expected to cost around $1 billion
Boeing expects 787 Dreamliner production issues and reworks to end up costing around $1 billion in abnormal costs.
In its quarterly results, Boeing said,
“The low production rates and rework are expected to result in approximately $1 billion of abnormal costs, of which $183 million was recorded in the quarter.”
The planemaker is dealing with several quality issues on its 787s and is working closely with the Federal Aviation Administration (FAA) on fixes.
“The company continues to focus 787 production resources on conducting inspections and rework and continues to engage in detailed discussions with the FAA regarding required actions for resuming delivery.”
Boeing also revealed that its current production rate of the 787 Dreamliner is now at two planes per month. At its peak, Boeing was producing 14 787s per month but has repeatedly slashed its production rate of the aircraft, which stood at five planes per month this summer.
“The current 787 production rate is approximately two airplanes per month. The company expects to continue at this rate until deliveries resume and then return to five per month over time.”
New problems discovered this month
Earlier this month, Boeing revealed that certain titanium parts on some 787s built in the past three years were not up to strength, citing problems with a third-party supplier. Affected parts of the plane include fittings that assist in securing the floor beam, while other fittings, spacers, brackets, and clips are still under investigation.
The 787 Dreamliner program has been hit with multiple issues over the years, including early battery problems in 2013, which led to all 50 787s in service worldwide being grounded for over three months. Last year, more problems were discovered, including quality issues with seams on the fuselage, forcing Boeing to rework around 100 undelivered 787s.
Although deliveries of the 787 took place earlier this year, they were halted again in May and are yet to resume. Boeing has delivered just 14 Dreamliners this year, all between March and June. In its quarterly results, Boeing noted it had secured orders for 12 787s.
Revenues are up by 8%
Revenues at Boeing were up by 8% compared to the same period last year, bringing in $15.28 billion for Q3 2021. The company notes that this was “driven by higher commercial airplanes and services volume.”
CEO Dave Calhoun said,
“Our commercial market is showing improved signs of recovery with vaccine distribution and border protocols beginning to open. As demand returns, supply chain capacity and global trade will be key drivers of our industry and the broader economy’s recovery.”
However, revenues were lower than the $16.3 billion market analysts had predicted. Boeing reported net losses of $132 million for the quarter, a favorable reduction on the $466 million net losses from Q3 2020.
How do you think Boeing has handled the issues with the 787 Dreamliner program? Let us know what you think in the comments.