Boeing (NYSE:BA) announced on Tuesday that it had canceled orders for 150 copies of its B737-Max in March, and reported its worst first quarter since 1984 in terms of deliveries, notably under the effect of the coronavirus crisis.
The American aircraft manufacturer thus delivered 50 aircraft in the first quarter of 2020, against 149 a year earlier . The group also garnered 49 new orders in the 1st quarter, but suffered 196 cancellations, which brings net orders to a negative total of 144 …
On Wall Street, Boeing was 4.27% in red Tuesday after the publication of this information, but it is expected to go up tomorrow.
Boeing’s European rival Airbus was less affected in the first quarter. He reported on April 8, 122 deliveries in the 1st quarter , down 25% year on year. Airbus nonetheless recorded 290 net orders over the first 3 months of the year. However, the group has reduced production by around a third compared to the average production rates prior to the coronavirus crisis.
150 B737-Max cancellations in March
Boeing’s quarterly figures include the cancellation of 75 orders for B737-Max from several buyers, including the Brazilian group GOL , which canceled 34 of the 135 aircraft ordered. Another cancellation of 75 B737-Max came from Avolon , the world’s third largest player in the airliner leasing market.
The fleet of B737-Max (Boeing’s bestseller) has been grounded since March 2019 after two deadly accidents linked to a defect in the aircraft’s anti-stall system. Despite the changes made by the group, the American aviation authorities have not yet given the green light to the return to service of the aircraft.
Boeing’s situation was further complicated by the coronavirus crisis, which resulted in the shutdown of a large part of the group’s production , which is now negotiating financial aid. The firm appealed to the banks Lazard and Evercore to negotiate this aid, as well as the granting of loans from the private sector.