737 MAX assembly
Boeing’s first 737 MAX jet makes its way through the production line at the Renton assembly plant. Most of the orders that Boeing booked in 2016 were for 737 jets. (Boeing Photo)

The Boeing Co. says it delivered 748 commercial jets last year and booked net orders for 668 aircraft, including a burst of 202 orders in December.

As furious as that pace was, it didn’t quite match Boeing’s performance in 2015 or analysts’ year-end expectations for 2016. Nevertheless, the count seems likely to leave Boeing ahead of its European rival, Airbus, which is due to report its final 2016 figures next week.

Boeing’s tally doesn’t include its multibillion-dollar sale to Iran, which is still contingent on financing, but it does take 180 canceled orders into account. The company said its order backlog remains at roughly seven years’ worth of production at current rates.

Most of last year’s orders were for single-aisle 737 jets, which says as much about the softness in the market for wide-body planes as it does about the appeal of Boeing’s next-generation, fuel-efficient 737 MAX.

That market softness, plus the drive to compete with Airbus, led Boeing Commercial Airplanes to reduce its workforce by about 8 percent in 2016, with more reductions to come in 2017.

The sales trend suggests a cloudier outlook for operations in Everett, where Boeing’s wide-body jets are made, than for the plant in Renton where 737s are assembled.

In November, Boeing named GE executive Kevin McAllister to become president and CEO of the commercial airplane division, transitioning into the post held by Ray Conner. Today, McAllister sent a message to employees recapping the past year and looking ahead to the next year’s challenges. Here’s the full text of the message:

“Thanks to the efforts of the entire Commercial Airplanes team, we finished 2016 strong. In December alone we delivered 67 airplanes and won 202 net orders. Overall we delivered 748 airplanes and won 668 net orders for the year.

“During the holiday break I had the chance to visit employees in Everett working to deliver 777s. It was truly inspiring to see firsthand the dedication and passion our employees have to get airplanes into the hands of our airline customers. I also want to send huge kudos to the Seattle Delivery Center team and the teams at our other sites for their outstanding performance in helping us meet our delivery commitments.

“While orders and deliveries are a big part of the story, BCA achieved a number of key milestones in 2016, including the first flight of the 737 MAX, the beginning of final assembly on the new 787-10 Dreamliner, the opening of the 777X Composite Wing Center in Everett, the delivery of the 500th 787 Dreamliner and the debut of the 737 MAX at the Farnborough Airshow.

“In addition to visiting several of our BCA sites in December, I’ve also been listening to our airline customers. Their expectations are very clear: They are depending on Commercial Airplanes to continue to execute on every part of our strategy to operate faster and more efficiently, remain steps ahead of the competition, provide superior value at a competitive price and deliver on our commitments.

“This year we will focus on differentiating our value with our customers, delivering on our operational and financial commitments, and focusing on meeting our plan so we can continue to invest in new products, develop the team and build a strong One Boeing culture. We’re also looking forward to the first 737 MAX 8 delivery, as well as the rollout and first flight of both the 737 MAX 9 and 787-10.

“Seeing BCA from the outside, as I have over many years, is impressive. Seeing BCA from the inside, up close as a new member of the team, is incredible. In the coming weeks and months I’ll continue to listen, learn and hopefully meet more of you as I travel around the company. I also look forward to continuing to work with Ray and seeking his advice and counsel as we face the challenges and opportunities 2017 will bring.

“I’m excited to begin this year with you and to be part of this amazing team.”

Finally, here’s the rundown on 2016 deliveries and orders by airplane type:

  • 737s: 701 gross orders, 550 net orders, 490 deliveries, 4,452 unfilled orders.
  • 747s: 18 gross orders, 17 net orders, 9 deliveries, 28 unfilled orders.
  • 767s: 26 gross orders, 26 net orders, 13 deliveries, 93 unfilled orders.
  • 777s: 23 gross orders, 17 net orders, 99 deliveries, 442 unfilled orders.
  • 787s: 80 gross orders, 58 net orders, 137 deliveries, 700 unfilled orders.
  • Total: 848 gross orders, 668 net orders, 748 deliveries, 5,715 unfilled orders.
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