Major Boeing customer Avolon sees 'impressive' progress in production following strike

DUBLIN (Reuters) - The chief executive of major Boeing customer Avolon said on Thursday he was really encouraged by progress being made by the U.S. manufacturer in stabilising production in the wake of a seven-week strike late last year.

Boeing on Tuesday said it had delivered 45 airplanes in January, the most deliveries in a month for the U.S. planemaker since 2023.

"The level of clarity and visibility on the ramp up of the production line is impressive ... we are really encouraged by what we are seeing there," Avolon CEO Andy Cronin said in an interview on Thursday, following a visit to production facilities in Seattle last month.

Avolon is the world's second-largest aircraft leasing company. The sector is responsible for around half of Boeing and Airbus aircraft orders.

"I think the first step in the journey is getting production stability, and I think Boeing are making enormous steps forward on that journey relatively quickly," Cronin said.

Cronin warned, however, that a bumper fourth-quarter of production at Boeing rival Airbus had put strain on the supply chain since.

"It certainly puts strain on supply chain, and that stress continues," he said.

Cronin was speaking following the publication of financial results for 2024 in which Avolon reported adjusted net income of $458 million, not including $150 million after-tax income from settlements of insurance claims in respect of aircraft stranded in Russia.

(Reporting by Conor Humphries; Editing by Catarina Demony)