Boeing 767 freighter resumes deliveries after a three-month hiatus

The Boeing Company (BA.N) resumed widebody 767 deliveries on Wednesday after a three-month interruption caused by quality issues.

‍

After discovering that the center fuel tanks made by the supplier on the 767F freighter and KC-46 tanker made by the company were not properly sealed, the U.S. planemaker was forced to halt deliveries of the aircraft.

‍

There was no comment from Boeing on when 767 deliveries resumed, but flight data from March 24 indicates that Boeing handed over one 767F freighter to FedEx (FDX.N) on that date. On the same day, Boeing's defense unit tweeted that a KC-46 tanker had been delivered to the United States Air Force.

‍

The FedEx freighter that flew from Paine Field north of Seattle to Indianapolis on Tuesday was another one.

‍

Before that, it had made its most recent 767 deliveries in December of last year.

‍

Although Boeing maintained that the fuel tank issue would not affect its ability to meet annual delivery targets, the company was required to remove and repaint the center fuel tank of the affected aircraft in order to resume deliveries.

‍

There will be a resumption of 767 freighter deliveries "shortly," according to Stan Deal, the president of Boeing Commercial Airplanes, who also announced last week that the company would begin KC-46 tanker deliveries shortly afterward.

‍

"It appears that we have an adhesion problem with the paint. The sealer is not adhering properly to the paint. We need to make sure that we go in and make sure everything is in compliance with what is required. This has taken quite a bit of time to complete," Deal explained, adding that the company was still evaluating how many aircraft need to be reworked as a result of the process.

‍

Wall Street closely monitors the arrival of aircraft on the market, as customers hand over a large part of their payment when they pick up their planes at Boeing. Despite the influx of cash from the 767 deliveries, the charge that has been imposed by the fuel tank defect may partly offset the cash influx from the KC-46 program.

‍

There is a possibility that Boeing will disclose the charge during its first-quarter earnings on April 26. Chief Financial Officer Brian West said in March that the charge is expected to be lower than $500 million.

‍

In accordance with the terms of Boeing's fixed-price contract with the U.S. Air Force, Boeing is responsible for paying for all costs exceeding $4.9 billion, and as of today, Boeing has taken $6.8 billion in charges for these expenses.