Boeing in recent weeks removed orders for 38 of its in-development 777X from its backlog, placing the deals into a special accounting bucket reserved for orders it suspects might not close.
The company’s recently filed annual financial report and data posted on its website reveal the change, which Boeing now confirms.
On 14 January, Boeing had updated its publicly available backlog figures to show that it ended 2024 with 464 777s in the backlog, including first-generation 777 Freighters and the in-development, long-delayed 777X.
Since then, however, Boeing adjusted the website figure downward by 38, to show that the backlog now includes 426 777s.
Asked about the change, Boeing confirms it moved 38 orders for the 777X out of its backlog and into its “ASC 606” accounting bucket, which houses deals the company suspects might not result in actual sales.
Such orders remain backed by firm contracts but Boeing considers them suspect due to factors that can include the financial condition of buyers, geopolitical events such as sanctions, and “delivery delays, production disruptions and delays to entry into service”, according to its financial filings.
“The company reviews ASC 606 before each quarterly earnings and makes adjustments, if needed. In this case, an additional 38 orders moved out of the backlog and into ASC 606,” Boeing says.
“Demand for the 777X remains strong across global markets as our customers continue to invest in more fuel-efficient, capable Boeing airplanes”.
Boeing is now working to certificate the first 777X model, the 777-9, having recently said it still expects the type to clear that milestone in 2026.
But the programme is badly delayed and fresh off another major setback after Boeing in August last year grounded its four-strong 777-9 flight-test fleet after discovering fractured structural engine components in a test aircraft.
Flight tests only resumed in January after a break lasting more than four months.
Boeing’s latest annual financial report, filed with the US Securities and Exchange Commission on 3 February, also confirms the backlog reduction.
That document breaks out order figures by the first-generation 777 and the 777X. It says that at end-2024 Boeing held unfilled “firm” orders for 358 777X, down from 396 three months prior.
