Key Takeaways
- Boeing's (BA) 777X commercial debut is now postponed to early 2027, potentially incurring significant non-cash accounting charges ranging from $2.5 billion to $4 billion.
- Launch customer Lufthansa (LHA) is adjusting its fleet plans, excluding the 777X until 2027, while major customer Emirates is also growing more cautious about the delivery timeline.
- OpenAI and Apple (AAPL) have filed motions to dismiss a lawsuit by Elon Musk's xAI, which alleged anti-competitive practices and an "exclusive" AI partnership.
- Apple (AAPL) and OpenAI assert their agreement is "expressly not exclusive" and that xAI's claims of antitrust harm are speculative.
Boeing (BA) is facing another significant setback with its 777X widebody aircraft, as its commercial debut has been pushed back to early 2027. This latest delay, a further postponement from the previously targeted 2026, is expected to result in substantial financial implications for the aerospace giant. Analysts estimate potential non-cash accounting charges for Boeing could range from $2.5 billion to $4 billion due to program delays and reach-forward losses. The company is expected to provide more details during its upcoming earnings report on October 29.
The ongoing delays for the 777X, which was originally slated for delivery in 2019/2020, are primarily attributed to the complex certification process, described by Boeing CEO Kelly Ortberg as a "mountain of work." This extended timeline is forcing airlines to revise their long-haul fleet strategies. Deutsche Lufthansa AG (LHA), a key launch customer, has already adjusted its fleet plans, opting not to include the 777X until 2027. Similarly, Emirates, the largest customer for the 777X, has reportedly become more cautious regarding the aircraft's entry into service. Airlines are being compelled to extend the operational life of older aircraft to bridge the gap created by these delays.
In the technology sector, OpenAI and Apple (AAPL) have moved to dismiss a lawsuit filed by Elon Musk's AI startup, xAI. The lawsuit, filed in August, accused Apple and OpenAI of engaging in an illegal conspiracy to stifle competition within the burgeoning artificial intelligence market. xAI specifically alleged that an "exclusive" arrangement between Apple and OpenAI disadvantaged its own AI chatbot, Grok, and the X app in the App Store, seeking billions of dollars in damages.
Both companies have strongly refuted xAI's claims. Lawyers for Apple (AAPL) argued in court filings that their agreement with OpenAI is "expressly not exclusive" and that Apple publicly intends to partner with other generative AI chatbots in the future. They further contended that xAI's lawsuit fails to "plausibly allege" any harm to competition. OpenAI's legal team echoed this sentiment, stating that xAI has not demonstrated any specific harm or antitrust violations and characterized Musk's legal actions as a form of "harassment" or "lawfare." This legal battle is also linked to a separate trade secrets lawsuit filed by xAI against OpenAI, alleging the poaching of employees and theft of proprietary technology related to the Grok chatbot.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.