Boeing delays first 777X delivery to 2027 and takes a nearly $5 billion charge, raising total program costs to about $15 billion as the wide-body program faces regulatory scrutiny and engine issues.
Boeing’s 777X Program Faces Delay and Soaring Costs
A Program Mired in Delays
Launched in 2013 with hopes of entering service by 2020, Boeing’s 777X programme has been beset by engine problems, design changes and tough regulatory scrutiny following the 737 MAX crisis. Engineers had to redesign the engine‑to‑wing attachment after cracks were found in the test fleet. Flight testing resumed in early 2025, but Boeing executives admit a “mountain of work” remains to achieve certification.
Financial Impact
Despite revenue rising about 30 % to US$23.2 billion in the third quarter, Boeing recorded a pretax charge of almost US$5 billion related to the 777X and 767 programmes, dragging the company to a net loss of roughly US$5.3 billion. The latest charge pushes total 777X costs to around US$15 billion and weighed on Boeing’s shares.
Why the 777X Matters
The 777X family – comprising the 777‑9 and 777‑8 variants – is designed to replace Boeing’s 777 and compete with Airbus’s A350. It features new GE9X engines and composite wings that promise improved fuel efficiency. Launch customers such as Emirates and Lufthansa see the aircraft as vital for their long‑haul fleets, and further delays could prompt them to reconsider orders.
What’s Next for Boeing?
Boeing says the additional delay reflects the time needed to complete design changes and satisfy regulators, and executives maintain that no new technical issues have surfaced. Meanwhile, the company is increasing production of the 737 MAX, delivering 55 jets in September — the highest since 2018 — and holds orders for about 5,900 commercial aircraft. Analysts warn that certification and supply‑chain constraints remain risks, but rising revenues suggest the manufacturer’s broader turnaround plan is progressing.
Broader Industry Context
The setback for the 777X comes as long‑haul travel recovers and airlines weigh fleet expansions. Airbus’s A350 has captured some of the market share once dominated by Boeing, and airlines are demanding timely deliveries. Observers say meeting the 2027 delivery target is crucial not just for Boeing’s finances but for maintaining U.S. leadership in the wide‑body jet segment.
