Boeing Orders Fall to 16-Year Low--Update
January 14 2020 - 1:47PM
Dow Jones News
By Doug Cameron and Benjamin Katz
Boeing Co. said deliveries and new orders for its jetliners hit
their lowest point in more than a decade as the global grounding of
the 737 MAX undermined the aerospace giant's business.
The U.S. plane maker in 2019 handed over 380 aircraft, including
military versions of its jetliners, a 14-year-low that compares
with a record 863 deliveries by European rival Airbus SE. Boeing
delivered 806 planes in 2018, a high for the company.
The Chicago-based company ended last year with new orders for
246 commercial jets of all types, before cancellations and model
swaps, its lowest tally since 2003.
Boeing and Airbus have enjoyed a two-decade duopoly that is now
out of kilter because of the MAX's grounding last year, with the
European plane maker's share of orders and deliveries moving well
above its historical level of about half.
Shares in Airbus rose 0.6% on Tuesday, while Boeing gained 1.3%
as it handed over more 787 Dreamliners -- its biggest source of
cash with the MAX grounded -- while deliveries of military jets and
helicopters more than doubled last year.
Order cancellations climbed for both companies in the past year,
especially for larger wide-body planes as airline traffic growth
has slowed and carriers in some emerging markets have been buffeted
by competition and volatile exchange rates.
A record number of airline collapses last year idled more than
400 planes around the world, though most were put to work to help
fill the void left by the MAX's grounding.
American Airlines Group Inc. said Tuesday that it would remove
the MAX from its schedules until June, two months longer than
previously planned. Carriers are adjusting to the prospect that
regulators may require pilots to go through time-consuming
simulator training before flying the plane again.
Boeing said it delivered 35 jets in December, its highest count
since March, when the MAX was grounded by regulators in the wake of
two fatal crashes, forcing the company to suspend deliveries.
Boeing still has orders for around 4,500 of the planes, but has
halted production because of uncertainty over when the MAX might
resume flying and the risk of airlines and leasing companies
canceling existing deals.
Airbus's record delivery tally for 2019 still fell short of the
company's original target because of production setbacks. Airbus
chief Guillaume Faury, who took the helm in April, has had to
temper hopes of boosting its A320 narrowbody production target by
10% to about 70 aircraft a month. The A320, Airbus's rival to the
Boeing 737 family, is currently sold out until late 2024.
Despite its production constraints, Airbus brought in 1,131
orders last year for a net total of 768 -- slightly more than in
2018. The new orders were boosted by the launch of a A320 variant
that boasts more range. The bigger A321 XLR has been eating into
the potential market that Boeing envisions for its first all-new
aircraft model in a decade.
Boeing's 246 new-order tally last year included deals for 113 of
its 787s and 38 of the widebody 777. The new 777X, which has been
delayed by design and production problems, came up empty.
Write to Doug Cameron at doug.cameron@wsj.com and Benjamin Katz
at ben.katz@wsj.com
(END) Dow Jones Newswires
January 14, 2020 13:32 ET (18:32 GMT)
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