Several types of Boeing aircraft’s production have been affected as approximately 33,000 unionized workers in the Pacific Northwest have remained on the picket lines.
Boeing workers with the International Association of Machinists and Aerospace Workers’ Union (IAM) went on strike in mid-September, resulting in disruptions to the company’s manufacturing of some commercial and military planes.
“Airplane production in Washington state is temporarily paused including work on the 737 MAX, 767, 777/777X, P-8, KC-46A Tanker, E-7 Wedgetail. Work at our Fabrication sites in Washington and Oregon will also temporarily pause,” a Boeing spokesperson told FOX Business.
The spokesperson noted that employees “not represented by this union will continue to report to work as normal” and that the IAM strike “doesn’t impact 787 production in South Carolina.”
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The 737 MAX is an important part of the Virginia-based company’s business.
Meanwhile, Boeing has said the upcoming 777X is supposed to be the “world’s largest and most efficient twin-engine jet.”
On Friday, CEO Kelly Ortberg said that the aircraft type was facing delivery delays from “challenges we have faced in development, as well as from the flight test pause and ongoing work stoppage.”
Boeing will deliver its first 777-9 in 2026, with the initial 777-8 freighter slated to follow in 2028, according to preliminary third-quarter results also released Friday. Previously, it had been targeting 2025 for the 777-9.
The company forecasted a $2.6 billion pre-tax earnings charge from the 777X program in the third-quarter stemming from the flight testing delays and strike.
Airlines including Emirates, Qatar Airways, Korean Air and others have ordered 777X planes from Boeing.
Ortberg announced the new timeline for the 777X as he simultaneously outlined additional measures like largely winding down production of the 767 Freighter and laying off 10% of Boeing workers that he linked to efforts to remain competitive and bolster its finances.
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“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” he wrote to Boeing staff. “Beyond navigating our current environment, restoring our company requires tough decisions and we have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”
Boeing’s production of the 767 Freighter will wind down in 2027 apart from its KC-46A Tanker, according to the company.
In the third quarter, its commercial airplane segment will see a $400 million pre-tax charge for the 767 Freighter “which also reflects impacts from the IAM work stoppage,” it said in its preliminary third-quarter earnings release.
Overall, Boeing said it would generate $17.8 billion in third-quarter revenue. Its loss per share, meanwhile, will be $9.97, according to the company.
In addition to the ongoing strike, the company has also been working to recover from headwinds stemming from a Boeing 737 MAX plane’s door plug panel blowing off mid-flight in January.
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Boeing will officially put out its financial results for the third quarter in just over a week, something likely to be closely watched by analysts and investors.
It already disclosed its commercial and defense aircraft deliveries for the quarter, with the former notching 116 and the latter seeing 34.