Aviation industry faces a slew of challenges insiders say will take years to resolve
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2025
0mins
Source: CNBC
Boeing's Ongoing Challenges: The aviation industry faces continued difficulties due to Boeing's delivery delays and supply chain issues, with experts predicting a challenging year ahead for airlines reliant on Boeing aircraft. Despite efforts to improve safety and quality, significant changes at Boeing may not materialize until 2025.
Industry-Wide Issues: Beyond Boeing, the entire aviation ecosystem is struggling with spare part shortages and engine maintenance problems, affecting airline operations and leading to potential increases in airfare as capacity remains constrained.
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Analyst Views on BA
Wall Street analysts forecast BA stock price to rise
16 Analyst Rating
14 Buy
1 Hold
1 Sell
Strong Buy
Current: 229.930
Low
150.00
Averages
269.14
High
298.00
Current: 229.930
Low
150.00
Averages
269.14
High
298.00
About BA
The Boeing Company is an aerospace company. Its segments include Commercial Airplanes (BCA), Defense, Space & Security (BDS), and Global Services (BGS). Its BCA segment develops, produces and markets commercial jet aircraft principally for the commercial airline industry worldwide. Its family of commercial jet aircraft in production includes the 737 narrow-body model and the 767, 777 and 787 wide-body models. Its BDS segment is engaged in the research, development, production and modification of manned and unmanned military aircraft and weapons systems for strike, surveillance and mobility. Its BGS segment provides services to its commercial and defense customers worldwide. It sustains aerospace platforms and systems with a range of products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Future Order Outlook: Despite the delivery halt, Boeing's CEO indicated during the latest earnings call that China could soon place a “big number” of aircraft orders, suggesting that potential demand in the Chinese market remains, particularly if U.S.-China relations improve.
- Market Reaction: While retail investor sentiment around Boeing is leaning bearish, there is still optimism regarding the CEO's upcoming visit to China with President Trump, as this could potentially lead to new order opportunities for Boeing.
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- Boeing Order Expectations: Senator Steve Daines expressed hope that the leaders' meeting would lead to Boeing jet orders, noting that it has been nine years since any aircraft purchases were made in China, underscoring the importance of restoring trade ties.
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See More
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