Boeing (NYSE:BA) acknowledged it may fall behind schedule in securing certification for its long-delayed 777X aircraft, raising the prospect of another setback on a program already years overdue. The stock dropped 3.3% Thursday, touching a one-month low.
Speaking at a Morgan Stanley conference, Chief Executive Officer Kelly Ortberg said test flights have not uncovered new technical issues but emphasized that a “mountain of work” remains before approval. He didn’t confirm whether certification, targeted for 2026, could slip into 2027. Ortberg also cautioned that even a minor delay could carry financial consequences.
The 777X, a next-generation version of Boeing’s (NYSE:BA) popular 777 widebody jet, was originally expected to enter service at the start of the decade. Ortberg said customer demand for the aircraft remains strong despite the prolonged timeline.
Boeing (NYSE:BA) is also working toward certifying two new versions of its 737 Max, the smaller Max 7 and larger Max 10, next year. On production, the company has stabilized output of the 737 at 38 planes a month and aims to raise that to 42 by year-end. For the 787 Dreamliner, monthly production is set to climb from eight units to 10 next year.
“We’ve got to do this right,” Ortberg said of production increases. “If we’re not ready, we’ll wait a month. A month doesn’t matter in the scheme of things; losing stability matters.”