Boeing Supplier Dispute Halts 777 Freighter Production for Nearly Two Months, Disrupts 767

Key Facts

A dispute between Boeing and supplier Vaero halted production of the 777 freighter for nearly two months and also disrupted production of 767 aircraft, including freighters and KC-46 tankers, according to a Reuters report published on October 23, 2026. Boeing said in a lawsuit filed in August that the small Florida-based company had stopped delivering the trailing-edge beam kits needed for aircraft wings. The complaint estimated the disruption cost at up to $6.5 million a day. Although the two companies reached a settlement in late September, 777 freighter production had not resumed by the time of the report. Reuters cited three Boeing employees familiar with the matter as saying the stoppage remained in place after the settlement.

The complaint centers on trailing-edge beam kits, which Boeing said were critical and indispensable, and for which Vaero was the sole supplier. The interruption in deliveries disrupted work at the wing production facility in Everett, Washington, according to the complaint cited in the report. Boeing provided the daily cost estimate as part of the lawsuit, describing it as the company’s estimate of the financial impact of the disruption. The parts shortage affected the 777 freighter and 767 programs, as well as KC-46 tankers, which rely on 767 production. Two sources told Reuters that Boeing was trying to bring production of the kits in-house.

Boeing removed two 777 freighters, which were in partial assembly, from the final assembly line during the disruption because the parts were unavailable, the report said. Reuters identified one as bound for FedEx, based on data from IBA. The move shows that the parts shortage affected aircraft already on the assembly line, not just the pace of production. By contrast, two employees said a small number of aircraft whose wings were completed before the dispute could be delivered before year-end. The report did not specify when production would resume or how many aircraft might be covered by that possibility.

Boeing delivered 21 777 freighters from the start of 2026 through the date of the Reuters report, according to company data cited in the report. That figure differs from Boeing’s October 13 announcement that it had delivered 5 aircraft from the 777 program in the third quarter and 20 from the start of the year through the end of September; the official figures cover the program as a whole and do not separate freighters. The difference between the two measures gives a clearer picture of freighter deliveries on one hand and total deliveries across the family on the other. The 777X was unaffected by the dispute because it uses composite wings, the report said. Boeing’s effort to restore production flow is focused on making the disputed part in-house.

On September 30, Boeing and Ethiopian Airlines announced a firm order for 8 777-8 freighters and two 777 freighters. The deal combines the current model with the next generation at a time when 777F production remains halted and Boeing is working to contain the parts shortage. The CEO of Ethiopian Airlines Group said adding the two aircraft would strengthen the company’s ability to serve customers with greater payload capacity, operational flexibility, efficiency and sustainability. Boeing said the Ethiopian airline currently operates 12 777 freighters and connects more than 70 cargo markets across Africa, Asia, Europe, the Middle East and North America. The 777-8F has a maximum structural payload of about 118 tonnes, according to Boeing specifications.

Boeing’s production halt comes as the company says international air cargo capacity has risen 5% since the start of 2026 despite market disruptions. In its forecast published for the same year, the company projected air cargo traffic would grow about 3.7% annually through 2045, with demand for more than 2,900 new or converted freighters. The forecast includes new-build and converted aircraft needed to renew fleets and keep pace with e-commerce growth, according to Boeing. At the company level, the backlog reached a record $715 billion at the end of the second quarter, including more than 6,200 commercial aircraft. These figures provide context for the scale of demand Boeing is working to meet, while the report did not specify the dispute’s effect on delivery schedules for individual orders.