BA Boeing Co

By Doug Cameron 

Boeing Co. said it delivered 24 jets in November, a modest improvement from a month earlier that still leaves the plane maker likely to hand over fewer than half as many aircraft in 2019 as last year.

The company said Tuesday that it has delivered 345 commercial jets and military variants of its jetliners so far this year. That puts Boeing on pace to deliver well below half the 806 planes delivered in 2018.

The freeze on MAX deliveries following two fatal crashes has left the company relying more on handovers of twin-aisle planes, defense equipment and services to bolster its balance sheet. The MAX has yet to be recertified by global regulators.

The big swing in deliveries has pressured the company's liquidity, even after Boeing suspended its stock-buyback program that consumed $4 billion in cash last year. Shares of the company fell 0.7% on Tuesday.

Analysts expect Boeing will freeze its dividend next year, with the payout expected to be revealed next week. The company boosted its dividend -- which represents about $1.2 billion in cash a quarter -- by 20% last year.

Boeing's deliveries for November represented a drop from the 79 jets it delivered in the same month last year. In October, Boeing delivered 20 planes. Boeing said it delivered 22 wide-body jets in November, two more than the same month last year, though the dozen 787 handovers still trail the elevated 14-a-month production rate.

Orders at last month's Dubai Air Show boosted the backlog for the grounded 737 MAX by 30 jets and cut the year-to-date cancellations for the 737 range to 182, most of them linked to the collapse of India's Jet Airways Ltd. in April

Boeing said Tuesday it delivered 22 wide-body jets in November, two more than the same month last year, helping bolster cash flow weakened by the MAX crisis, though the dozen 787 handovers still trail the elevated 14-a-month production rate.

Shares of the company were recently down 0.7% following the monthly orders and delivery update.

The company has delivered 345 commercial jets and military variants of its jetliners so far this year, and with any handovers of the MAX now set to slip into next year -- subject to recertification by regulators -- it is set to end the year with well below half the 806 planes delivered in 2018.

The big swing has pressured the company's liquidity, even though Boeing has suspended its stock-buyback program that consumed $4 billion in cash last year.

The freeze on MAX deliveries following two fatal crashes has left the company relying more on handovers of twin-aisle planes, defense equipment and services to bolster its balance sheet.

Analysts expect Boeing will freeze its dividend next year, with the payout expected to be revealed next week. The company boosted its dividend -- which represents about $1.2 billion in cash a quarter -- by 20% last year.

Boeing handed over two 737 NG aircraft last month, five 767s, four 777s and a 747 jumbo, as well as the 12 787 Dreamliners.

Boeing's final 2019 tally hinges on whether the company can resume MAX deliveries by year-end. The Wall Street Journal reported the company hopes to secure regulatory approval to hand over some jets next month, though new pilot training would prevent them from restarting passenger service until 2020.

Most MAX operators have removed the plane from their schedules until February or March.

There are 383 commercial MAX jets in storage, and an estimated 400 that have been built and are awaiting delivery.

Rival Airbus SE delivered 77 jets last month, and though it cut its own full-year guidance because of production problems, it is still on track to overtake Boeing and hand over 860 aircraft in 2019.

Write to Doug Cameron at doug.cameron@wsj.com

(END) Dow Jones Newswires

December 10, 2019 15:02 ET (20:02 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.