Nearly a year after the infamous door plug blowout incident at one its aircrafts, Boeing on Friday gave updates regarding the steps it has taken over the last year to improve safety standards.
Boeing said it has addressed over 70% of employee suggestions from quality training programs, forming cross-functional teams to resolve manufacturing challenges.
A “move ready” criteria has been introduced across its final assembly line for the 737, 787, and portions of the 767 and 777 lines to mitigate risks.
The plane maker also says it has invested in its “speak up” system to strengthen confidentiality, while keeping employees informed of the status of any concerns they raise about quality and safety issues.
The mechanics and quality inspectors will also be expected to stamp their names on the completed work so that accountability can be fixed.
To mitigate human errors, Boeing has also appointed former astronaut Nicholas Patrick as its Human Factors Functional Chief Engineer, a role dedicated to improving the reliability of its production system.
Ambitious production goals for 2025
Boeing plans to deliver 570 planes in 2025, a significant increase from 2024 and its highest target since delivering 806 jets in 2018.
Achieving this milestone is critical to meeting customer expectations and restoring financial stability.
However, challenges remain. The Federal Aviation Administration (FAA) has capped Boeing’s 737 MAX production at 38 planes per month, and increasing this rate will require demonstrating consistent quality and safety.
Additionally, the company must address lingering supply chain disruptions and labour issues that have hampered output in recent years.
The stakes are high, as analysts project Boeing’s 2025 earnings per share at $1.20.
While a return to profitability would mark a significant achievement, past optimism has often been met with disappointment.
In recent years, projected earnings have fallen short due to unforeseen setbacks, such as the near-seven-week strike in 2024 and recurring quality issues with the 737 MAX.
Analysts’ take on BA’s 2025 forecast
Boeing’s share has taken a beating, falling by close to 30% over the last one year, during which the S&P 500 has seen its level rise by over 24%.
However, Boeing’s stock has shown signs of recovery with shares rebounding from their 52-week lows.
Ed Ponsi, managing director of Barchetta Capital Management, and known financial advisor says that while Boeing had a rough year, it beat the indices “soundly” in December, gaining nearly 14%.
Shares of the airplane manufacturer hit a four-month high.
In mid-December, the stock climbed above its 200-day moving average (red) for the first time in nearly a year. Boeing will be my first buy of the new year.
Ponsi speculated that since retail traders normally are not able to move the market, one or more institutions have decided to buy the stock.
In mid-December, the stock climbed above its 200-day moving average (red) for the first time in nearly a year. Boeing will be my first buy of the new year.
Ponsi said that if the buying does not continue, the stock will slide back below its key moving averages, at which point it will be time to exit the trade.
“If the buying does continue, we may have boarded Boeing just before takeoff,” he said.
Crispus Nyaga, analyst at Invezz also forecasts a good run for Boeing in 2025 based on technical analysis.
Boeing has moved between the 23.6% and 38.2% Fibonacci Retracement level. Oscillators have all continued rising. Therefore, the BA stock price may continue soaring in 2025, with the next point to watch being at $217, the 61.8% retracement point and 25% above the current level.
For Boeing, 2025 is a chance to rebuild its reputation and restore trust among customers, regulators, and investors.
Success will depend on the company’s ability to execute its plans flawlessly, deliver on its promises, and navigate a complex industry landscape.
If Boeing can achieve its ambitious production and safety goals, it may well mark the beginning of a long-awaited recovery.
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