Boeing's Starliner won't launch astronauts until 2028 (and may need a new rocket), NASA says
NASA announced Boeing's Starliner spacecraft will conduct an uncrewed test flight to the ISS in late 2024 and a crewed mission in 2028. Starliner has faced multiple setbacks, including helium leaks and thruster failures. NASA and Boeing have addressed these issues, with Starliner-1 and Starliner-2 planned for future flights. NASA will invest $359 million in spacecraft upgrades and Vulcan Centaur certification.
How this was made
The 30-second read
Why it matters
The announcement signals a prolonged gap in revenue from NASA's commercial crew contract and increased program costs, which could pressure Boeing's stock while underscoring SpaceX's competitive advantage.
Market read
The delay impacts Boeing's aerospace segment earnings outlook and may shift investor focus toward SpaceX and other commercial crew providers.
What to watch
U.S. government funding for the program and potential cost recovery mechanisms may mitigate the negative impact.
Background
Boeing's Starliner program has faced multiple test failures; the latest update pushes the next crewed flight to 2028 and outlines technical upgrades and a new launch vehicle.
Ticker impact
NASA announced Starliner crewed launch delayed to 2028 and a $359M upgrade cost, impacting Boeing's commercial crew program.
likely pressure as investors price in delayed earnings and higher program costs
The postponement pushes back cash flow from the Starliner contract and adds $359M of upgrade expenses, which may weigh on Boeing's short-term outlook.
Market effects
Highlights challenges for the U.S. commercial crew aerospace sector and may benefit SpaceX competitors.
Potentially dampens sentiment for U.S. aerospace stocks in the near term.
Limited global impact; primarily affects Boeing and U.S. space industry investors.
Counterpoint
The delay could allow Boeing to incorporate improvements, potentially enhancing long-term reliability and future contract wins.
Key entities
- CompanyBoeing
Manufacturer of the Starliner spacecraft, listed on NYSE as BA.
- AgencyNASA
U.S. space agency overseeing the commercial crew program.
- CompanyUnited Launch Alliance
Provider of Atlas V rockets for early Starliner flights; future launches to shift to Vulcan Centaur.
