Boeing scraps new 777-9 over costly rework

Boeing dismantled a new 777-9 jet due to high rework costs. Emirates refused delivery of early models, and Lufthansa is negotiating compensation. United Airlines showed no interest in acquiring the jets. The decision follows regulatory delays and structural redesigns, leading to significant financial losses for Boeing, according to the article.

Boeing (BA) secured a $112.41M contract modification for a Saudi training program, increasing the total to $256.67M. Its P/S ratio is 1.68, below historical median, suggesting modest growth expectations. GF Value™ estimates BA is 6.8% undervalued at $197.00. Insiders sold $5.3M vs. $0.8M bought, while 21 gurus hold shares with mixed activity.

Boeing's CFO reassured that mid-seal issues in the GE9X engine won't delay the 777X's service entry. GE identified, redesigned, and began producing a new seal, with separate FAA approval processes for old and new seals. Boeing expects first 777-9 delivery to Lufthansa in 2027, despite a six-year delay and $15B in charges. The GE9X is the sole engine for the 777X, and its durability is crucial for the program's success.

Boeing Co. (NYSE:BA) received a $112.4 million contract modification from the U.S. Department of War to upgrade and maintain the F-15 Saudi Advanced Aircrew Training Device Phase II program. The total contract value increased to $256.7 million. Work will be done in Saudi Arabia and is expected to be completed by Sept. 30, 2031. The contract is part of a foreign military sale to Saudi Arabia.

The FAA granted Boeing a three-year exemption to continue producing the 777F freighter beyond 2027 emissions standards, allowing up to 35 new aircraft to be certified through 2030. This follows delays in the 777-8F, Boeing's next-gen replacement. Boeing had 38 unfilled 777F orders as of August 2026, with potential for new sales under the exemption.

Boeing's CEO Kelly Ortberg stated that 777X certification testing will likely extend into 2027 due to unresolved engine mid-seal issues, delaying ETOPS authorization. GE Aerospace is working on a fix, with both companies planning 2027 deliveries. Labor negotiations also pose a risk to certification timelines. The 777X is seven years behind schedule, with airlines like Emirates and Lufthansa awaiting ETOPS for long-haul routes.