Boeing’s (NYSE:BA) 777X program is now slated for commercial service in early 2027, rather than next year, Bloomberg reported, citing sources familiar with the situation.
Analysts suggest the delay could result in a non-cash accounting charge ranging from $2.5 billion to $4 billion, though Boeing has not provided detailed figures, according to the report. Already six years behind schedule, the 777X remains a cornerstone of Boeing’s long-haul strategy.
Lufthansa, the aircraft’s launch customer, has adjusted its fleet plans to exclude the 777X until 2027, Bloomberg said. Emirates, Boeing’s largest buyer, has also taken a more cautious approach, now planning for delivery no earlier than 2027.
Boeing executives have reportedly met with major investors to stress that the financial impact will be spread across the entire 777X program.
The delay stems largely from slower-than-anticipated progress in certification flights with Federal Aviation Administration (FAA) pilots and inspectors, rather than new technical problems.
Last month, Boeing CEO Kelly Ortberg told a Morgan Stanley conference that certification delays were due to a “mountain of work.”
“As you know, even a minor schedule delay on the 777 program has a pretty big financial impact because we’re in a reach-forward loss situation,” Ortberg said. “So we’re looking at that real hard.”
The 777X program has already incurred over $11 billion in overruns, intensified by FAA scrutiny following the 737 Max incidents. The program remains in a reach-forward loss position, meaning Boeing will not recover development costs within the first 500 aircraft produced. Any additional expenses must be immediately recorded as charges to earnings, Bloomberg reported.
Customers including Emirates, Cathay Pacific, and Qatar Airways are still awaiting deliveries of the jet, designed to succeed the retired 747 jumbo. Boeing executives are expected to provide updates on the schedule delay and its financial implications when reporting earnings on Oct. 29.
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