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Aircraft Orders & Deliveries

Boeing CFO Forecasts Growth in Jet Deliveries and Cash Flow Recovery for 2026

Boeing plans higher 737 MAX and 787 deliveries in 2026 with a positive cash flow outlook, deferring DOJ penalty to next year.

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Boeing CFO Projects Delivery Growth and Cash Flow Recovery in 2026

Boeing is projecting a financial and operational turnaround in 2026, with Chief Financial Officer Jay Malave outlining expectations for increased jet deliveries and a return to positive free cash flow. Speaking at the UBS Global Industrials and Transportation Conference on December 2, 2025, Malave provided a detailed update on the manufacturers production stability and financial outlook.

According to reporting by Reuters, the company anticipates higher delivery volumes for both its 737 MAX and 787 Dreamliner programs in 2026 compared to current year levels. While the executive noted that November 2025 deliveries were “a little light” due to holiday schedules, the broader trajectory suggests a stabilization of factory output following a turbulent period for the aerospace giant.

Production Rates and Delivery Targets

The core of Boeing’s recovery plan rests on its ability to ramp up production rates for its best-selling aircraft. Malave confirmed that the company is currently stabilizing 737 MAX production at approximately 38 jets per month. The manufacturer is now “loading” its operations to reach a target rate of 42 jets per month, prioritizing stability over speed during this ramp-up phase.

787 Dreamliner Progress

In the wide-body segment, the 787 Dreamliner program is reportedly stabilizing at a rate of seven jets per month. Malave indicated that Boeing aims to increase this to eight per month by the end of 2025, with a further goal of reaching 10 per month in 2026.

Certification Timelines

Regarding future variants, the CFO provided an updated timeline for the 737 MAX 10. Certification for the largest variant of the MAX family is now targeted for late 2026. This timeline is critical as Boeing seeks to compete more effectively in the high-capacity narrow-body market.

“When you now fast forward to 2026, we’re going to be increasing our deliveries.”

, Jay Malave, Boeing CFO (via Reuters)

Financial Outlook: Cash Flow and Margins

Boeing’s financial guidance for 2025 and 2026 has shifted, driven largely by the timing of legal liabilities. Malave stated that the company now expects a free cash flow outflow of approximately $2 billion for 2025. This represents an improvement from the previously guided $2.5 billion outflow.

However, as Reuters reports, this improvement is primarily technical rather than operational. A significant Department of Justice (DOJ) penalty payment, originally expected to impact the 2025 books, has slipped into 2026. Consequently, while 2025 looks slightly better on paper, the liability remains.

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Looking ahead to 2026, Boeing projects a return to positive free cash flow in the “low single-digit” billions range. Malave reiterated the company’s long-term ambition to generate $10 billion in annual free cash flow, though he acknowledged that the company is “not there yet.”

Defense and Acquisition Updates

The Defense, Space & Security unit, which has historically struggled with fixed-price contract overruns, is expected to generate high single-digit margins, signaling potential stabilization. Additionally, Malave confirmed that Boeing still intends to close its acquisition of Spirit AeroSystems by the end of 2025, a strategic move intended to improve supply chain quality and integration.

AirPro News Analysis

The “Cash Flow Shuffle”

While the reduction in the projected 2025 cash outflow from $2.5 billion to $2 billion may appear positive, investors should view this with caution. The improvement is largely attributable to the deferral of the DOJ penalty payment into 2026 rather than a sudden spike in operational efficiency. The true test of Boeing’s recovery will be its ability to generate organic cash from operations in 2026, independent of legal payment timings.

Managing Expectations

CFO Jay Malave’s characterization of November deliveries as “a little light” appears to be a proactive effort to manage market expectations before official numbers are released. By attributing the dip to the Thanksgiving holiday schedule, Boeing is attempting to separate temporary calendar impacts from systemic production issues. However, with the 737 MAX 10 certification now pushed to late 2026, the pressure is on the existing MAX variants to carry the revenue load for another full year.

Frequently Asked Questions

When does Boeing expect to certify the 737 MAX 10?
Boeing is currently targeting late 2026 for the certification of the 737 MAX 10.

What is the current production rate for the 737 MAX?
Production is stabilizing at roughly 38 jets per month, with a target to reach 42 jets per month.

Why did the 2025 cash flow projection improve?
The projected outflow improved to ~$2 billion largely because a DOJ penalty payment expected in 2025 has been delayed until 2026.

Sources

Photo Credit: Boeing

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Aircraft Orders & Deliveries

Wizz Air Accepts 250th Aircraft from SMBC Aviation Capital

Wizz Air receives its 250th Airbus A321neo from SMBC Aviation Capital, advancing its fleet growth and sustainability goals by 2030.

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This article is based on an official press release from SMBC Aviation Capital. See the original release for full details.

Wizz Air Celebrates Delivery of 250th Aircraft in Partnership with SMBC Aviation Capital

In a significant milestone for European low-cost aviation, Wizz Air has officially accepted its 250th aircraft, an Airbus A321neo, delivered by Dublin-based lessor SMBC Aviation Capital. The delivery underscores the airline’s aggressive expansion strategy as it pushes toward a fleet target of 500 aircraft by the early 2030s.

According to the official announcement from SMBC Aviation Capital, the aircraft (MSN 12932) was physically delivered at the Airbus facility in Toulouse, France, on November 20, 2025. A formal ceremony followed on November 28, 2025, at Budapest Airport to mark the occasion. The aircraft is powered by two IAE PW1133G-JM engines and features a commemorative livery designed by a Hungarian artist, the result of a global design competition.

Strengthening the Lessor-Airline Partnership

This Delivery represents more than just a numerical milestone; it highlights the deepening financial ties between Wizz Air and SMBC Aviation Capital. The press release confirms that this A321neo is the first of seven aircraft scheduled for delivery as part of a new sale-and-leaseback transaction between the two companies.

Peter Barrett, CEO of SMBC Aviation Capital, emphasized the longevity of their collaboration in a statement regarding the handover:

“Being part of delivering their 250th aircraft is a testament to the strength of our long-standing relationship and to Wizz Air’s growth story.”

József Váradi, the CEO of Wizz Air, described the event as a “defining moment” for the carrier. In the company’s statement, he noted:

“The 250th aircraft is far more than just adding another aircraft to our fleet, it is a defining moment in Wizz Air’s history… 250 is not just a number, it is a symbol of our ambition and a launchpad for the next chapter of our journey.”

The “Wizz 500” Strategy and Sustainability

The arrival of the 250th jet marks the halfway point of the airline’s “Wizz 500” strategy, which aims to operate a fleet of 500 aircraft by the 2030–2032 timeframe. Central to this plan is the transition to an “all-neo” fleet, leveraging the Airbus A321neo’s superior economics.

According to data provided in the release and accompanying reports, the A321neo offers a 20% reduction in fuel consumption and CO2 emissions compared to previous-generation aircraft, alongside a 50% reduction in noise footprint. Wizz Air reports a carbon intensity of approximately 51.2g CO2 per revenue passenger kilometer (RPK) as of late 2025, maintaining its position as one of the most carbon-efficient airlines in Europe. The carrier has set a goal to reduce emissions intensity by a further 25% by 2030.

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AirPro News Analysis: Navigating Growth Amidst Headwinds

While the delivery of the 250th aircraft is a celebratory event, it arrives during a complex operational period for Wizz Air. Financial data for the six months ending September 30, 2025, shows the airline remains profitable, with revenue rising 9.0% year-over-year to €3.34 billion and an operating profit of €439.2 million.

However, the airline is currently managing significant technical challenges. Industry data indicates that approximately 40 to 45 aircraft in the Wizz Air fleet remain grounded due to mandatory inspections of Pratt & Whitney GTF engines. These groundings have constrained capacity, forcing the airline to extend leases on older jets to maintain its schedule.

The delivery of new A321neo airframes from partners like SMBC Aviation Capital is therefore critical not only for expansion but for maintaining operational stability. With a backlog of over 300 Airbus A321neo and A321XLR aircraft, Wizz Air is relying on a steady stream of new deliveries to offset the grounded capacity and continue its market share battle against competitors like Ryanair and easyJet.

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Photo Credit: SMBC

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Aircraft Orders & Deliveries

Star Air Plans 40-Aircraft Embraer Order to Expand Fleet by 2030

Star Air targets fleet growth from 11 to 50 aircraft by 2030 with a potential order of 40 Embraer jets backed by new investors and UDAN scheme support.

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Star Air Eyes Major Fleet Expansion with Potential 40-Aircraft Embraer Order

Star Air, the aviation arm of the Sanjay Ghodawat Group (SGG), is reportedly in the advanced planning stages of a significant fleet expansion that could reshape regional connectivity across India. According to recent industry reports, the airline is eyeing a new order for approximately 40 Embraer aircraft. This strategic move is designed to propel the carrier from a niche regional player to a substantial national connector, targeting a fleet size of roughly 50 aircraft by the year 2030.

This ambitious growth trajectory marks a pivotal shift for the airline, which currently operates a modest fleet of 11 aircraft. The expansion plan is not merely aspirational; it is supported by concrete financial developments. For the first time in its history, Star Air has sought and secured external capital, validating its business model to the broader investment community. This influx of funds is expected to fuel the acquisition of new assets and the development of supporting infrastructure.

The timing of this potential order aligns with the broader maturation of the Indian aviation market, particularly in the regional sector. By focusing on Tier-2 and Tier-3 cities often bypassed by larger carriers, Star Air has carved out a profitable niche. We observe that this expansion is heavily influenced by the government’s UDAN (Ude Desh ka Aam Nagrik) scheme, which incentivizes connectivity to underserved airports, providing a stable foundation for the airline’s aggressive growth strategy.

Strategic Capital and Fleet Composition

To support this massive scaling of operations, Star Air successfully raised ₹150 crore (approximately $18 million) in November 2025. This capital injection represents the first tranche of a planned ₹350 crore Series B funding round. Notably, this round attracted marquee investors, including Micro Labs Limited, a pharmaceutical major, and Deepak Agarwal, the promoter of Bikaji Foods. Prior to this, the airline was fully funded by its parent company, the Sanjay Ghodawat Group. The transition to external funding indicates a maturing corporate structure and high investor confidence in the airline’s operational efficiency.

The capital raised is earmarked for specific strategic pillars: fleet expansion through deposits and leases, the broadening of the route network, and the establishment of in-house MRO capabilities. Developing internal MRO facilities is a critical step for any growing airline, as it significantly reduces long-term operational costs and ensures higher aircraft availability. This vertical integration suggests that Star Air is planning for sustainable, long-term operations rather than short-term market capture.

Regarding the hardware, the potential order for 40 aircraft is expected to be finalized or placed in 2026, with deliveries staggered to meet the 2030 target. Industry analysis suggests the order will likely include more Embraer E175 jets, which the airline currently operates with success. Furthermore, there is strong speculation regarding the inclusion of the newer Embraer E190-E2 or E195-E2 jets. Embraer has been aggressively pitching these “Profit Hunter” E2 series aircraft to Indian carriers, citing their fuel efficiency and lower seat costs as ideal solutions for the price-sensitive regional market.

“This fundraise brings us closer to our vision of building a comprehensive aviation platform spanning airline operations, NSOP services, MRO facilities, cargo, and aviation training.”, Shrenik Ghodawat, Managing Director, Sanjay Ghodawat Group

The Regional Advantage and Operational Model

Star Air’s operational philosophy differs significantly from the dominant low-cost carriers in India, such as IndiGo or the Air India group. While major carriers focus on high-volume trunk routes connecting metropolitan hubs like Delhi and Mumbai, Star Air targets “thin” routes. These are connections between smaller cities, such as Hubballi, Kishangarh, Jamnagar, and Kolhapur, and major metros. By utilizing aircraft with 50 to 76 seats, the airline can achieve break-even load factors with fewer passengers, a feat that is mathematically impossible for competitors flying 180-seat Airbus A320s or Boeing 737s on the same routes.

The backbone of this strategy is the government’s UDAN scheme, which provides viability gap funding and route exclusivity for a fixed period. This subsidy structure mitigates the financial risk of opening new routes and protects the airline from immediate competition. While other regional carriers like TruJet and Air Costa have struggled or ceased operations, Star Air has maintained profitability by adhering to a disciplined cost structure and matching capacity strictly to demand. The decision to stick with Embraer aircraft further consolidates this advantage, as these jets are capable of landing on the shorter runways common in smaller Indian towns, opening up destinations inaccessible to larger narrow-body jets.

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However, this rapid expansion is not without challenges. The global aviation industry is currently grappling with severe Supply-Chain constraints, particularly regarding engine parts and aircraft deliveries. If Star Air opts for the E2 series, they will need to navigate the availability of Pratt & Whitney engines, which have faced global scrutiny for supply delays. Additionally, tripling the fleet size necessitates a massive recruitment drive. Finding and training skilled pilots and technicians to man 50 aircraft by 2030 will be a logistical hurdle in a market already facing a shortage of qualified aviation personnel.

“As we progress toward our 50-aircraft goal by 2030, our focus remains on maintaining operational excellence, safety, and delivering a seamless experience for our customers.”, Captain Simran Singh Tiwana, CEO, Star Air

Concluding Section

Star Air’s move to acquire approximately 40 new Embraer aircraft signals a vote of confidence in the future of India’s regional aviation sector. By securing external funding and committing to a specific fleet type that matches the unique demands of Tier-2 and Tier-3 connectivity, the airline is positioning itself as a critical link in the national transport grid. If successful, this expansion will not only quadruple the airline’s capacity but also enhance economic mobility for smaller Indian cities.

Looking ahead, the execution of this order and the subsequent integration of new aircraft will be the true test of the airline’s management. Balancing rapid growth with operational reliability, while navigating global supply chain volatilities, will determine if Star Air can transition from a successful niche player to a major national airline. As the order is expected to be finalized in 2026, the industry will be watching closely to see how this ambitious roadmap unfolds.

FAQ

Question: How many aircraft does Star Air plan to order?
Answer: Star Air is in the planning stages for an order of approximately 40 Embraer aircraft to reach a target fleet size of 50 by 2030.

Question: Who are the new investors in Star Air?
Answer: In its recent Series B funding round, Star Air raised capital from investors including Micro Labs Limited and Deepak Agarwal, the promoter of Bikaji Foods.

Question: What aircraft types does Star Air currently operate?
Answer: As of late 2025, Star Air operates a fleet of 11 aircraft, consisting of Embraer ERJ-145s and Embraer E175s.

Sources

Air Data News

Photo Credit: Star Air

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Aircraft Orders & Deliveries

China Airlines Approves 7.85 Billion Modernization Plan for Fleet

China Airlines invests US$7.85B to upgrade fleet with Airbus and Boeing aircraft, retiring older 747 freighters and enhancing cargo and passenger operations.

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China Airlines Approves Major Fleet Modernization Plan

On November 26, 2025, the board of directors at China Airlines, Taiwan’s largest carrier, officially approved a substantial capital expenditure plan aimed at revitalizing its fleet. This strategic move involves a total investment capped at approximately NT$246 billion (US$7.85 billion). The decision marks a pivotal moment for the airline as it seeks to modernize both its passenger and cargo operations through a diversified acquisition strategy involving both Airbus and Boeing aircraft.

We observe that this acquisition is not merely about expansion but represents a calculated effort to replace aging airframes with next-generation technology. The approved plan includes the purchase of 16 new widebody aircraft and a significant investment in spare engines. By splitting the order between the two major aerospace Manufacturers, China Airlines appears to be mitigating supply chain risks while optimizing its fleet for specific long-haul and high-capacity routes.

Concurrently, the airline is accelerating the retirement of its older fleet. The board has authorized the disposal of four Boeing 747-400F freighters, signaling the end of the four-engine era for the carrier’s cargo division. This transition underscores a broader industry trend toward twin-engine efficiency and sustainability, positioning China Airlines to better compete in the post-pandemic global market.

Acquisition Breakdown: Passenger and Cargo Fleets

The core of this Investments lies in the acquisition of 16 widebody aircraft, split evenly between passenger and cargo needs, as well as between Airbus and Boeing platforms. On the passenger side, the airline has committed to purchasing five Airbus A350-1000s and five Boeing 777-9s. The A350-1000 will complement the carrier’s existing A350-900 fleet, offering increased capacity and range for long-haul operations. Meanwhile, the Boeing 777-9, the latest iteration of the 777 family, is intended to replace older widebody jets, likely the aging 777-300ERs, ensuring the airline maintains a competitive edge in cabin comfort and operational efficiency.

regarding the cargo division, the board approved the purchase of six freighters to bolster Taiwan’s status as a global logistics hub. This includes four Boeing 777-8Fs and two Boeing 777Fs. The inclusion of the 777-8F is particularly notable; as a next-generation freighter, it promises higher payload and range capabilities compared to current models. The two standard 777Fs will likely provide immediate capacity to address current market demands while the airline awaits the certification and delivery of the newer 777-8F variants.

To support these new airframes, the investment plan also covers the procurement of spare engines valued at approximately US$229 million. This procurement includes one Rolls-Royce Trent XWB-97 engine for the Airbus fleet and three GE Aerospace GE9X engines to support the incoming Boeing 777X aircraft. Securing these assets upfront is a prudent measure to ensure operational reliability and minimize downtime once the new aircraft enter service.

The split-order strategy allows China Airlines to mitigate delivery delays and leverage the specific strengths of both Airbus and Boeing platforms for different route profiles.

Strategic Disposal of the 747-400F Fleet

As new technology enters the fleet, older assets are being phased out. A critical component of the November 26 announcement is the disposal of four Boeing 747-400F freighters. These iconic “Queens of the Skies” have served as the backbone of global cargo logistics for decades, but their four-engine configuration makes them less fuel-efficient compared to modern twin-engine alternatives. The shift to the 777 freighter family represents a significant upgrade in terms of fuel economy and maintenance costs.

We can confirm that buyers have already been secured for half of the aircraft slated for disposal. Cargolux, the Luxembourg-based cargo carrier, has agreed to purchase two of the 747-400Fs. The transaction value for these two aircraft is estimated at NT$1.25 billion (approximately US$260 million). This sale not only generates immediate capital for China Airlines but also facilitates a smoother transition to a more sustainable fleet structure.

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Negotiations regarding the sale of the remaining two 747-400Fs are currently ongoing. The successful offloading of these assets is crucial for the airline’s modernization goals. By replacing these older jets with the incoming 777F and 777-8F models, China Airlines is effectively lowering its carbon footprint per ton of cargo while maintaining the high capacity required to service major trade routes between Asia, North America, and Europe.

Concluding Section

The approval of this NT$246 billion investment plan signifies China Airlines’ robust confidence in the future of international travel and commerce. By balancing orders between Airbus and Boeing, the carrier is hedging against supply chain volatility, a lesson likely learned from recent industry-wide Deliveries delays. The introduction of the A350-1000 and 777-9 will elevate the passenger experience, while the modernized cargo fleet ensures the airline remains a dominant player in global logistics.

Looking ahead, the operational integration of these mixed fleets will be the next major challenge. However, the long-term benefits of improved fuel efficiency, reduced maintenance costs, and increased payload capabilities present a strong business case. As the 747-400Fs depart for their new homes with Cargolux, China Airlines is clearly positioning itself for a leaner, more efficient future.

FAQ

Question: What is the total value of China Airlines’ new fleet investment?
Answer: The board approved a capital expenditure budget of approximately NT$246 billion (US$7.85 billion).

Question: Which aircraft models is China Airlines purchasing?
Answer: The Airlines is acquiring 16 aircraft in total: 5 Airbus A350-1000s, 5 Boeing 777-9s, 4 Boeing 777-8Fs, and 2 Boeing 777Fs.

Question: What is happening to the older Boeing 747-400 freighters?
Answer: China Airlines is selling four 747-400Fs. Two have already been sold to Cargolux for approximately NT$1.25 billion, while negotiations for the remaining two are ongoing.

Sources

Sources: Taiwan News

Photo Credit: Airbus

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