Boeing Woes continue as Trump calls out Jet maker for delays
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Boeing (NYSE:BA), the leading manufacturer of commercial jets, has had a difficult past 12 months of so.
The company has been beset by safety issues, union strikes, leadership turnover, quality control issues, and delivery delays, to name a few. These issues and others have contributed to financial struggles that have seen the company consistently operate at a net loss.
This week, the problems grew as President Donald Trump called out Boeing for the delays on delivering overdue Air Force One jets.
“I’m not happy with Boeing,” Trump said Wednesday aboard Air Force One, Fox Business reported. “It takes them a long time to do, you know, Air Force One. We gave that contract out a long time ago as a fixed price contract, and I’m not happy with the fact that it’s taking so long, and we may do something else. We may go and buy a plane or get a plane or something. But I’m not happy with the fact that it’s taking Boeing so long. There’s no excuse for it.”
Delivery delayed to 2029 or beyond
Boeing won a contract in 2018 during Trump’s first term to build two new 747-8 aircraft to be used as Air Force One. According to Fox Business, the new planes were supposed to be delivered in December of 2024, and that had initially been pushed back to 2027 or 2028 due supply chain and other issues. The most recent delay has the delivery date pushed back until 2029, or beyond.
In January, Reuters reported that new Boeing CEO Kelly Ortberg said the company was working to deliver the aircraft earlier than anticipated, but now this new delay clouds the matter.
Boeing stock was moving lower on the news, down about 3% to around $180 per share. The stock has a median price target of $200 per share, which would suggest a 10% increase. Boeing stock is down about 11% over the past year and up 2% YTD.
But the company is in the middle of a leadership transition with a lot of heavy lifting ahead. And it has not been profitable in recent years so investors should be wary.
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