Boeing confirms China aircraft deliveries have stalled

Boeing has stated in its latest quarterly update that Chinese airlines do not intend to take delivery of new aircraft.

The aircraft maker confirmed that aircraft deliveries to China have effectively come to a standstill. CFO Brian West stated during the Q1 2025 earnings call that “many of our customers in China have indicated they will not take delivery” due to retaliatory tariffs”.

“The only region that we have an issue with aircraft delivery today is China,” West said, addressing the geopolitical shockwave that threatens around 50 aircraft slated for Chinese airlines this year. “Given the uncertainty, we’re taking a very straightforward approach to dealing with these deliveries.”

That approach includes remarketing completed or in-progress jets and reassigning upcoming production slots. “We’re not going to continue to build aircraft for customers who will not take them,” West stated. “We have the ability to assign those positions to other customers.”

The aircraft manufacturer is also working closely with U.S. officials as trade tensions with China continue to weigh on the aerospace sector. “We continue to work this situation proactively with the administration, and it’s clear that they understand the importance of the aerospace industry to the U.S. economy and the role that Boeing plays as a top U.S. exporter,” West added.

Despite the headwinds, Boeing reported a strong start to 2025. Boeing delivered 130 commercial aircraft in the first quarter of 2025—a 57% jump from the same period last year—helping drive commercial revenue up 75% to $8.1 billion. It also reaffirmed its full-year delivery target of 490–530 aircraft.

West emphasised that Boeing’s conservative approach to 2025 planning had built in buffers for events like this. “I’m glad we put a conservative plan together that allow us to deal with the tariffs,” he said.

The company reported free cash flow of $1.8 billion and narrowed its core operating loss, suggesting signs of recovery even amid external uncertainty.

Wole Shadare

COMMENTS

Comments are closed.