Boeing hit with $5bn in penalties as new jet delayed

Aircraft giant Boeing has suffered another setback as it announced production of its much anticipated 777X planes would now be pushed to 2027, costing it $5bn (£3.7bn) in late delivery penalties.

The US firm said its 777X had been delayed due to mounting regulatory hurdles which it needs to pass.

It comes during a surge in demand for international travel, when Boeing wants to push its latest model as an upgrade to its iconic 747 and 777 models, a favourite of commercial airlines.

Boeing, beleaguered by trust issues after a series of disasters including a plane door blowing out mid-flight, said revenue in the three months to September rose by 30% to $23.27bn against the same period last year.

Its chief executive Kelly Ortberg said the firm was working to "restore trust with all of our stakeholders" and that he was disappointed with the 777X schedule delay, though he added the plane performed "well in flight testing".

He said Boeing was working to "stabilise our operations to fully recover our company's performance".

As well as complaints over the safety of some of its aircraft in recent years, the firm has suffered staff strikes over pay and conditions. More than 3,000 workers in two of its US defence units walked out in August, while last year, a walkout by around 30,000 passenger plane workers ended after seven weeks.

Mr Ortberg has previously pledged to "restore trust" in the business, overhaul its corporate culture and prioritise the safety of passengers.

In its latest results, Boeing said it had delivered 55 planes in September, a jump from the previous year when the strikes reduced deliveries and cost the firm billions.

It anticipated the 777X planes would begin delivery from 2027, which would improve the company's cash flow as so far, the jet's delays have accrued almost $15bn (£11.3bn) in charges.

It says the model will be more efficient than its competition, make greater revenue for airlines, and have the "highest reliability in its class", with cleaner cabin air and a "smoother ride".