Fitch Ratings lowers its forecast for Boeing aircraft deliveries in 2024

Fitch Ratings Agency said in a report today, Friday, that it lowered its expectations for 2024 regarding Boeing aircraft deliveries, but said that it does not currently expect these amendments to lead to changes in the American company’s credit rating.

According to Sky News, Fitch expects to deliver between 350 and 370 737 MAX aircraft, and between 65 and 70 787 aircraft in 2024, which is less than previous expectations of about 400 and 75 aircraft, respectively.

According to the report published on Fitch’s website, it also expects free cash flow to be negative during this year, and said that these changes have been integrated into the issuer’s long-term “Boeing” rating at “BBB-” with a negative outlook.

Delivery expectations were affected by the decision of the Civil Aviation Administration of China to restrict deliveries of certain aircraft models to Chinese customers, as well as the decision of the US Aviation Administration to maintain control within Boeing factories while individually certifying newly produced aircraft.

Fitch believes the CAA restrictions on deliveries could be resolved by the middle of the third quarter, but would result in at least 20 to 30 fewer 737 MAX deliveries from inventory and five fewer 787 deliveries from inventory through 2024.