Boeing 737 MAX Deliveries Still Haven't Taken Off

A year ago, the Federal Aviation Administration finally recertified the Boeing (NYSE: BA) 737 MAX for commercial service after a 20-month grounding. Since then, most other global aviation regulators have approved the 737 MAX to return to service (with the notable exception of China). Meanwhile, COVID-19 vaccines have become widely available in the developed world, driving a strong rebound in air travel demand.

Despite these positive factors, Boeing continues to deliver 737 MAX jets to customers at a very slow pace. That's troubling for investors, because it means that the company won't be able to convert its massive inventory of completed 737s into cash very quickly.

Boeing entered 2021 with approximately 425 completed 737 MAX aircraft in its inventory. At the time, it had slowed 737 MAX production dramatically to give itself an opportunity to reduce its inventory in a timely fashion. In its 2020 annual report, Boeing estimated that it would deliver approximately half of its 737 MAX inventory by year-end.

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Source Fool.com