Boeing Delivered 11 Aircraft in September, but Won No New Orders
October 13 2020 - 11:29AM
Dow Jones News
By Doug Cameron
Boeing Co. said Tuesday that it didn't win any new orders in
September and delivered only 11 aircraft, weighed by the continued
grounding of the MAX, weak demand for its wide-body planes and
production problems affecting its 787 Dreamliner.
Boeing and rival Airbus SE are cutting production and jobs in
response to the slump in air travel, and face a glut of undelivered
planes, reversing the picture a year ago when airlines clamored for
jets that were behind schedule.
The U.S. company last week trimmed its long-term outlook for
aircraft demand, citing uncertainty over the pace of recovery from
a travel slump that has forced airlines to park a quarter of the
single aisle jet fleet and 40% of their wide-body planes.
The 737 MAX is expected to win permission from regulators to
re-enter service by the end of the year after a prolonged grounding
following two fatal crashes, but orders for hundreds have been
canceled while others have been pushed back by several years.
Airlines including United Airlines Holdings Inc. and Delta Air
Lines Inc. have continued to take some new planes despite severely
depressed passenger demand, some to raise cash through selling them
onto leasing companies and renting them back.
Boeing said deals for three MAX planes were canceled last month
while it removed another 48 its order backlog because of concerns
about the financial health of the buyers. The company has struck
more than 980 planes from its firm backlog this year, reducing the
remaining total to 4,325 at the end of September, including 3,403
MAX jets.
Boeing has resumed limited MAX production and has more than 400
completed jets awaiting delivery, with analysts estimating as many
as half lack customers following cancellations.
Deliveries of 98 planes of all types through the third quarter
are running at a third of last year's level, and almost half of
those are for cargo and military aircraft rather than passenger
jets.
Boeing handed over seven 787 Dreamliners last month, three more
than in August, with deliveries continuing to run below the
10-a-month production rate as it continues checks after revealing a
series of manufacturing flaws and quality-control problems.
Analysts estimate Boeing could end the year with as many as 40
undelivered Dreamliners.
The company last month also delivered freighter versions of its
747, 777 and 767 jets, and a single military version of the
737.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
October 13, 2020 11:14 ET (15:14 GMT)
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