Global Aviation Giant Faces Renewed Scrutiny

Global aerospace manufacturer Boeing announced on Wednesday, October 29, 2025, another significant delay for its highly anticipated 777X widebody jet, pushing the first delivery to 2027. The decision forces the company to take a pre-tax charge of $4.9 billion (approximately KSh 782 billion) to cover production costs and penalties for late deliveries, according to its third-quarter financial results released the same day.

The delay marks the latest in a series of setbacks for the 777X program, which was originally scheduled to enter service in 2020. In a statement, Boeing President and CEO Kelly Ortberg attributed the revised timeline to a slower-than-anticipated certification process with the U.S. Federal Aviation Administration (FAA), rather than new technical issues with the aircraft. "While we are disappointed in the 777X schedule delay, the airplane continues to perform well in flight testing, and we remain focused on the work ahead to complete our development programs," Ortberg stated on Wednesday.

This development comes as Boeing operates under intense scrutiny from regulators following a series of high-profile safety and quality control incidents, most notably the in-flight blowout of a door plug on an Alaska Airlines 737 MAX in January 2024. That event led the FAA to cap Boeing's 737 production, although the agency recently agreed to allow an increase from 38 to 42 jets per month.

Ripple Effects Felt in East Africa

The repeated delays have significant implications for airlines across the globe, including in East Africa, where fleet modernization and expansion are critical for competitiveness. Ethiopian Airlines, Boeing's largest customer in Africa, has existing orders for the 777-9, a model within the 777X family. The carrier's ambitious growth strategy, which includes expanding its hub in Addis Ababa, is heavily reliant on the delivery of new, efficient long-haul aircraft. Recent reports from August 2024 indicated that Ethiopian Airlines was already forced to lease alternative aircraft due to existing Boeing delivery delays, a situation this new 777X setback will likely exacerbate.

While Kenya Airways (KQ) does not have confirmed orders for the 777X, the national carrier is in the midst of its own five-year fleet expansion and modernization plan, aiming to increase its aircraft from 34 to 53 by 2029. KQ's leadership has already highlighted the significant challenges posed by a global aircraft shortage and manufacturing delays from both Boeing and Airbus. The strain on Boeing's production and certification resources, underscored by the 777X issues, contributes to this broader supply chain disruption, indirectly affecting the availability and leasing costs of aircraft for carriers like KQ.

Financial Performance and Path Forward

Despite the substantial charge against its earnings, Boeing reported strong top-line growth in its third-quarter results. The company announced on Wednesday that revenues rose by 30% year-over-year to $23.3 billion, driven by the delivery of 160 commercial airplanes—the highest quarterly total since 2018. The company also generated a positive operating cash flow of $1.1 billion.

However, the 777X charge resulted in a significant net loss of $5.34 billion for the quarter. The total cost associated with the 777X program's delays has now accumulated to roughly $15 billion since its launch in 2013, according to industry analysis.

CEO Kelly Ortberg has repeatedly emphasized the company's commitment to rebuilding trust with airlines and the flying public. "We are working to stabilise our operations to fully recover our company’s performance and restore trust with all of our stakeholders," he reiterated in his statement on Wednesday, October 29, 2025. The successful and safe certification of the 777X is a critical milestone in that recovery, but with the finish line now pushed to 2027, airlines and the aviation industry face a longer wait.