Boeing, a prominent aircraft manufacturer, faced a challenging month of May with only four new plane orders, none of which were for its popular 737 Max model. This marks the second consecutive month without any orders for the 737 Max, following a concerning incident involving a side panel blowout during a flight in January.
Comparatively, Airbus, Boeing’s European counterpart, reported net orders for 15 planes in May. While Airbus had 27 sales, they also experienced 12 cancellations. Additionally, Boeing had an order cancellation from Aerolineas Argentinas for a single Max jet, resulting in a net sales figure of only three for the month.
The lackluster performance in May, similar to the previous month’s figures, reflected a downward trend in sales for Boeing. The company’s shares dropped by 3% in afternoon trading, indicating investor concern over the slow pace of orders.
Boeing anticipates a possible resurgence in sales activity next month during the Farnborough International Airshow, where major aircraft deals are often announced. However, the company is facing challenges with the Federal Aviation Administration imposing production restrictions on 737s, whistleblower allegations of shortcuts in production, and reports of falsified inspection records on some 787 Dreamliner jets.
In May, Boeing delivered a total of 24 jetliners, including 19 Max jets. Notable recipients of Boeing planes included Ryanair from Ireland, which received four jets, and Alaska Airlines, which took delivery of three aircraft. In contrast, Airbus reported delivering 53 planes in the same month.
Despite the recent sluggish sales performance, Boeing continues to maintain a substantial backlog of more than 5,600 orders. This backlog serves as a testament to the company’s enduring reputation in the aviation industry and its potential for growth in the future.
In conclusion, Boeing’s challenges in securing new orders in May underscore the impact of previous incidents and regulatory issues on its sales performance. However, the company remains optimistic about the upcoming airshow and is poised to capitalize on potential opportunities to expand its market presence.
