Boeing sold 668 jets and delivered 748 in 2016. Deliveries were slightly down compared to 2015 because of a production rate cut for the 747 jumbo jet. Sales slumped compared to previous years as the airline industry faces a capacity glut.
Boeing delivered 748 jets last year, 14 fewer than in 2015 but still enough to leave it well ahead of rival Airbus in 2016 production.
However, overall sales for the year slumped despite a year-end rush that saw the company book 202 net orders in December, according to data released Friday.
Boeing’s final 2016 tally was 668 net orders, exactly 100 fewer jets sold than in the previous year.
In a message to employees Friday, the new chief executive of Boeing Commercial Airplanes, Kevin McAlister, also listed the successful achievement of a series of milestones during the year.
Most Read Business Stories
- People are quitting their jobs in record numbers. What will they do instead? | Jon Talton
- 12 tips to save money on your energy bills this winter
- After rising all year, Seattle-area rents start to cool down. That probably won't last
- Hundreds of FedEx packages are found in Alabama woods
- How Amazon may change America's chicken economy
He cited the first flight of the 737 MAX and its international debut at the Farnborough Airshow; the delivery of the 500th 787 Dreamliner and the start in South Carolina of final assembly of the latest Dreamliner model, the 787-10; and the opening of the 777X Composite Wing Center in Everett.
At list prices, the total value of Boeing’s 2016 net orders was $94 billion. According to market-pricing data from aircraft-valuation firm Avitas, the real value after standard sales discounts is estimated at about $44 billion.
Because the sales total lags the delivery total, Boeing’s backlog of unfilled orders drops by 80, the first time it’s fallen in seven years.
Airbus won’t release its corresponding order and delivery figures until next week, but at the end of November its deliveries lagged Boeing’s by more than 100 jets, so it clearly won’t match the U.S. plane maker’s output.
Airbus has struggled this year to meet its planned deliveries, beset by issues with the supply of Pratt & Whitney engines for its new A320neo jets and also with shortages of seats and other cabin-interior parts.
Of the planes Boeing delivered last year, 490 were the smaller 737 narrowbody jets assembled in Renton.
Of the 258 larger widebody jets Boeing built, the Everett plant assembled 197, including 99 large 777 twin-engine jets, 13 mid-size 767s and 76 all-composite 787 Dreamliners.
The slight dip in overall production compared to 2015 was largely due to the rate cut in the 747 jumbo-jet program. Boeing in 2016 delivered only nine 747s, exactly half the number delivered the previous year.
Boeing’s assembly plant in North Charleston, S.C., built 61 Dreamliners, according to Uresh Sheth, who tracks 787 production on the All Things 787 blog.
That means the South Carolina site is running at its full planned rate, building five 787s per month to Everett’s seven per month for a current total of 12 Dreamliners per month.
Boeing had said it was considering going up to 14 Dreamliners per month toward the end of the decade, with seven jets built at each site, but lack of new sales now makes that unlikely.
Indeed, several analysts, including Bainbridge Island-based industry observer Scott Hamilton, believe Boeing may have to drop the production rate back down to 10 Dreamliners per month. If that happens, it’s likely Boeing will balance production with five jets made at each assembly site — meaning that North Charleston maintains its current rate while Everett loses two jets per month.
The 2017 outlook is gloomy for Everett production and also for projected sales.
Boeing will cut 777 production in Everett this year in response to slow sales of the current model ahead of the debut of the replacement 777X. It will deliver nearly 30 fewer of the expensive big jets than last year.
In contrast, Renton should see more work, with a planned rate hike on the 737 to 47 jets per month from the current 42 per month.
Airplane sales in 2017 are expected to continue at a low level as the airline industry worldwide faces a capacity glut.
Yet there will be important milestones for Boeing Commercial Airplanes in the year ahead.
In his employee message, McAlister said he’s looking forward to the first 737 MAX delivery, the MAX 8 model, as well as the rollout and first flight of two new airplane models, the 737 MAX 9 and 787-10.