Boeing Deliveries 24 Jets in November
December 10 2019 - 12:21PM
Dow Jones News
By Doug Cameron
Boeing Co. said it delivered 24 jets in November, a modest
improvement from October that still leaves the plane maker likely
to hand over less than 400 aircraft in 2019.
November's figure represented a drop from the 79 jets it
delivered in the same month last year. In October, Boeing delivered
20 planes.
Order activity at last month's Dubai Air Show boosted the
backlog for the grounded 737 MAX by 30 jets and cut the
year-to-date cancellations for the 737 range to 182, most of them
linked to the collapse of India's Jet Airways Ltd. in April
Boeing said Tuesday it delivered 22 wide-body jets in November,
two more than the same month last year, helping bolster cash flow
weakened by the MAX crisis, though the dozen 787 handovers still
trail the elevated 14-a-month production rate.
Shares of the company were recently down 0.7% following the
monthly orders and delivery update.
The company has delivered 345 commercial jets and military
variants of its jetliners so far this year, and with any handovers
of the MAX now set to slip into next year -- subject to
recertification by regulators -- it is set to end the year with
well below half the 806 planes delivered in 2018.
The big swing has pressured the company's liquidity, even though
Boeing has suspended its stock-buyback program that consumed $4
billion in cash last year.
The freeze on MAX deliveries following two fatal crashes has
left the company relying more on handovers of twin-aisle planes,
defense equipment and services to bolster its balance sheet.
Analysts expect Boeing will freeze its dividend next year, with
the payout expected to be revealed next week. The company boosted
its dividend -- which represents about $1.2 billion in cash a
quarter -- by 20% last year.
Boeing handed over two 737 NG aircraft last month, five 767s,
four 777s and a 747 jumbo, as well as the 12 787 Dreamliners.
Boeing's final 2019 tally hinges on whether the company can
resume MAX deliveries by year-end. The Wall Street Journal reported
the company hopes to secure regulatory approval to hand over some
jets next month, though new pilot training would prevent them from
restarting passenger service until 2020.
Most MAX operators have removed the plane from their schedules
until February or March.
There are 383 commercial MAX jets in storage, and an estimated
400 that have been built and are awaiting delivery.
Rival Airbus SE delivered 77 jets last month, and though it cut
its own full-year guidance because of production problems, it is
still on track to overtake Boeing and hand over 860 aircraft in
2019.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
December 10, 2019 12:06 ET (17:06 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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