Boeing received orders for only four new planes in May — and for the second straight month, none for its best-selling 737 Max, as fallout continues from the blowout of a side panel on a Max during a flight in January.
The results released Tuesday compared unfavorably with Europe’s Airbus, which reported net orders for 15 planes in May — 27 sales but 12 cancellations.
Boeing also saw Aerolineas Argentinas cancel an order for a single Max jet, bringing its net sales for the month to three.
Shares of The Boeing Co. fell 3% in afternoon trading.
The dismal results followed poor figures for April, when Boeing reported seven sales — none of them for the Max.
Boeing hopes that the slow pace of orders reflects a lull in sales before next month’s Farnborough International Airshow, where aircraft deals are often announced.
But the Federal Aviation Administration is capping Boeing’s production of 737s after a door plug blew out from an Alaska Airlines Max, allegations by whistleblowers that Boeing has taken shortcuts to produce planes more quickly, and reports of falsified inspection records on some 787 Dreamliner jets.
Boeing, based in Arlington, Virginia, delivered 24 jetliners in May, including 19 Max jets. Ireland’s Ryanair got four and Alaska Airlines took three. Airbus said it delivered 53 planes last month.
Despite the slow pace of recent sales, Boeing still has a huge backlog of more than 5,600 orders.
Boeing, one of the world’s leading aerospace companies, has been facing a decline in sales for its 737 Max aircraft for the second consecutive month. This comes as a blow to the company, which has been struggling to recover from the grounding of the 737 Max fleet following two fatal crashes in 2018 and 2019.
The lack of orders for the 737 Max is a major concern for Boeing, as this particular model was once one of its best-selling aircraft. The grounding of the fleet has not only affected Boeing’s reputation but has also led to a significant decrease in sales and revenue.
The decline in sales can be attributed to a number of factors. Firstly, the ongoing safety concerns surrounding the 737 Max have made airlines hesitant to place new orders for the aircraft. Despite Boeing’s efforts to address the issues and make necessary changes to the plane’s software, many airlines remain cautious about its safety.
Additionally, the global aviation industry has been hit hard by the COVID-19 pandemic, with travel restrictions and reduced demand for air travel leading to a decrease in orders for new aircraft. This has further impacted Boeing’s sales, as airlines are now focusing on cutting costs and conserving cash rather than investing in new planes.
Boeing has been working tirelessly to restore confidence in the 737 Max and regain the trust of its customers. The company has implemented various safety measures and improvements to the aircraft, and has been in constant communication with regulators and airlines to address any concerns.
Despite these efforts, Boeing’s sales continue to decline, and the company is facing an uphill battle to recover from the setbacks caused by the grounding of the 737 Max fleet. It remains to be seen how Boeing will navigate these challenges and whether it will be able to bounce back from this difficult period.
In conclusion, Boeing’s decline in sales due to the lack of orders for the 737 Max for the second consecutive month is a significant setback for the company. With safety concerns and reduced demand for air travel continuing to impact sales, Boeing faces a tough road ahead as it works to rebuild its reputation and regain the trust of its customers.
