Boeing reported a sluggish performance in plane orders for May 2024, securing only four new orders with none for its popular 737 Max model. This marks the second consecutive month with no new orders for the Max, following a side panel blowout incident during a January flight.
In contrast, Airbus fared better, reporting net orders for 15 planes in May, despite facing 12 cancellations. Boeing also faced a setback with Aerolineas Argentinas canceling an order for a Max jet, bringing Boeing’s net sales for the month to just three.
This continued slump in orders impacted Boeing’s stock, with shares dropping 3% in afternoon trading. The weak results for May followed similarly poor figures for April, where Boeing reported only seven sales, none of which included the Max.
Hope for Recovery and Current Challenges
Boeing hopes that this lull in sales will reverse at the Farnborough International Airshow next month, where aircraft deals are often announced. However, the company faces several challenges. The Federal Aviation Administration (FAA) has capped Boeing’s production of 737s after an Alaska Airlines Max experienced a door plug blowout.
Additionally, whistleblowers have alleged that Boeing took shortcuts in its production processes, and there have been reports of falsified inspection records on some 787 Dreamliner jets.
Despite these challenges, Boeing delivered 24 jetliners in May, including 19 Max jets. Ireland’s Ryanair received four, and Alaska Airlines took delivery of three. In comparison, Airbus delivered 53 planes last month.
Despite the slow pace of recent sales, Boeing still holds a substantial backlog of more than 5,600 orders. This backlog provides some cushion against the current slowdown in new orders. However, the company needs to address its safety and production issues to regain customer confidence and stabilize its order flow.
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