(Bloomberg) — Boeing expects some testing of the upcoming 777X to begin in 2027, even as the U.S. planemaker confirmed deliveries of the long-delayed model will begin next year.
The aircraft maker blamed the delays on pending certification of a seal on the GE Aerospace turbine that powers the plane.
“This will likely cause us some problems for the rest of the year,” Kelly Ortberg, Boeing’s chief executive officer, said at a Morgan Stanley investor conference on Wednesday. “We may see some testing pushed into next year. We are still targeting deliveries for 2027.”
The 777X, seven years late, is strategically and financially important to Boeing in its battle with Airbus SE for a larger share of the lucrative long-haul market.
While Boeing reiterated its guidance of generating $1 billion to $3 billion in free cash flow this year, Chief Financial Officer Jay Malove said it was “a little less likely” to exceed the midpoint of the forecast due to the slower pace of deliveries of key 737 and 787 models.
Boeing shares fell as much as 6%, the most since October 2025, and were down 5.3% at 3:11 p.m. in New York. The stock is down 8.5% this year.
Ortberg also downplayed the likelihood of receiving a large order from China in one fell swoop related to President Xi Jinping’s upcoming trip to the United States. The executive said that while the company expects “an increase in orders in the future,” Chinese airlines will announce them at their own pace.
Ortberg said he expects another long-delayed model to be certified “very soon.” Boeing has completed all required flight testing of the key 737 Max 10 variant and regulators are currently evaluating all documentation, he said.
The long-delayed 737 Max 10 is the largest variant of Boeing’s best-selling family of jets and will replace Airbus’ best-selling A321neo. This model is key to generating cash and improving Boeing’s financial position after a series of crises over the past decade.
Boeing is working to turn things around after years of crises and deteriorations that prompted leadership changes and tarnished relationships with customers and U.S. regulators.
(Updates throughout with additional executive comments and promotions.)
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