Boeing CEO Kelly Ortberg on Thursday warned that certification for its 777X plane is falling behind schedule. Ortberg's comments come after Boeing on Wednesday struck a tentative agreement with its striking defense union. BA stock declined Friday, falling further from a key level.
Ortberg, while speaking at a Morgan Stanley conference on Thursday, said there is still a "mountain of work" when it comes to the 777X program. Boeing currently has five of its next generation, twin-engine jets in the test program.
The Dow Jones manufacturer still hopes to deliver the first 777X in 2026 — six years after its initial 2020 expected delivery. But Ortberg warned that Boeing is "falling behind on the certification," because the company still needs its Type Inspection Authorizations (TIAs) from the Federal Aviation Administration.
"We still don't have authorization from the FAA for a good portion of the certification program," Ortberg said. "So we're working through that right now with the FAA. But we're clearly behind our plan in getting the certification done."
Despite the concerns, demand for the 777X has been "fantastic," he said. "We've just got to get ourselves through the certification program, and the mountain of work is still in front of us."
Boeing Stock
Boeing stock slid 1.8% Friday. On Thursday, shares slumped 3.3%, falling decisively below their 50-day moving average after just undercutting that key level on Wednesday.
Boeing is trading in a flat base with a 242.69 buy point.
Boeing stock has rallied more than 24% this year, making it the fourth-best performer in the Dow Jones Industrial Average. The aerospace and defense manufacturer trails only JPMorgan Chase, Nvidia and Goldman Sachs.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
