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Boeing reports 150 737 Max cancellations in March
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CNBC's Phil LeBeau reports on the latest order data from Boeing as aircraft cancellations mount.
Boeing customers canceled a staggering number of 737 Max orders last month, deepening the crisis the company faces amid the coronavirus pandemic and the continued grounding of its bestselling plane after two fatal crashes.
The Chicago-based manufacturer on Tuesday posted 150 cancellations of its beleaguered 737 Max jets in March, the most in decades, the company said. Brazilian airline Gol canceled 34 of the narrow-body planes and leasing firm Avolon scrapped orders for 75 of them, a move it announced earlier this month. Net cancellations in the month totaled 119 thanks to 31 orders for wide-body passenger planes and military aircraft.
That brought net orders Boeing removed from its order list in first three months of the year to 307 planes, a sharp turnaround for a company that just over a year ago was aiming to increase output of its planes to meet strong demand.
Boeing shares were down 1% in late-morning trading, up from the session lows hit after the company released the dismal figures.
Boeing’s airline customers are now facing the steepest drop in demand ever recorded because of Covid-19 and harsh measures like stay-at-home orders to slow its spread. The pandemic comes on top of the more than year-long grounding of the 737 Max after 346 people were killed in two crashes.
“We are working closely with our customers, many of whom are facing significant financial pressures, to review their fleet plans and make adjustments where appropriate,” Boeing said in a statement. “At the same time, Boeing continues to adjust its order book to adapt to lower-than-planned 737 MAX production in the near term.”
Boeing earlier this month suspended operations at a South Carolina plant where it makes 787 wide-body planes, effectively halting its commercial aircraft production after Seattle-area factories were shut down temporarily, because of the pandemic and government restrictions aimed at curbing Covid-19. More than 100 Boeing employees have tested positive for the disease. The company employs about 160,000 people.
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Boeing customers canceled a staggering number of 737 Max orders last month, deepening the crisis the company faces amid the coronavirus pandemic and the continued grounding of its bestselling plane after two fatal crashes.
The Chicago-based manufacturer on Tuesday posted 150 cancellations of its beleaguered 737 Max jets in March, the most in decades, the company said. Brazilian airline Gol canceled 34 of the narrow-body planes and leasing firm Avolon scrapped orders for 75 of them, a move it announced earlier this month. Net cancellations in the month totaled 119 thanks to 31 orders for wide-body passenger planes and military aircraft.
That brought net orders Boeing removed from its order list in first three months of the year to 307 planes, a sharp turnaround for a company that just over a year ago was aiming to increase output of its planes to meet strong demand.
Boeing shares were down 1% in late-morning trading, up from the session lows hit after the company released the dismal figures.
Boeing’s airline customers are now facing the steepest drop in demand ever recorded because of Covid-19 and harsh measures like stay-at-home orders to slow its spread. The pandemic comes on top of the more than year-long grounding of the 737 Max after 346 people were killed in two crashes.
“We are working closely with our customers, many of whom are facing significant financial pressures, to review their fleet plans and make adjustments where appropriate,” Boeing said in a statement. “At the same time, Boeing continues to adjust its order book to adapt to lower-than-planned 737 MAX production in the near term.”
Boeing earlier this month suspended operations at a South Carolina plant where it makes 787 wide-body planes, effectively halting its commercial aircraft production after Seattle-area factories were shut down temporarily, because of the pandemic and government restrictions aimed at curbing Covid-19. More than 100 Boeing employees have tested positive for the disease. The company employs about 160,000 people.
For access to live and exclusive video from CNBC subscribe to CNBC PRO:
Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.
Connect with CNBC News Online
#CNBC
#CNBC TV
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