Aircraft manufacturer Boeing continues to face difficulties: in May it only received orders for four new aircraft and, for the second consecutive month, none of them corresponded to its best-selling model, the 737Maxreported Bloomberg. This situation is due in part to problems arising from the explosion of a side panel on a Max flight in January, which has raised concerns and affected sales.
Compared, Airbusthe biggest competitor of Boeing in Europereported net orders for 15 aircraft in May, after considering 27 sales and 12 cancellations, highlighting the disparity in the figures of both aviation giants.
The figures released on Tuesday, and published by NBCNews, revealed a discouraging outlook for the manufacturer, which also suffered the cancellation of an order for a Max by Aerolíneas Argentinas, leaving its net sales for the month at only three aircraft. This news comes after an equally weak April, in which the company reported seven sales, none of them for the 737 Max.
In addition to sales problems, Boeing faces restrictions imposed by the Federal Aviation Administration (FAA)which is limiting production of its 737 models. This comes after an incident in which a door plug on a Max Alaska Airlines was blown, along with accusations from whistleblowers that the company has cut steps in aircraft production to speed up times, and reports of falsified inspection records on some jets 787 Dreamliner.
The manufacturer, whose headquarters are located in Arlington, Virginiais not only struggling with reduced orders, but also with unfavorable stock market performance. Washington Post pointed out that the actions of Boeing fell $4.62, or 2.4%, closing Tuesday at $185.50. This drop reflects investor concern about the multiple problems facing the company.
In terms of deliveries, the company managed to deliver 24 passenger aircraft in May, of which 19 were Max. Among the customers who received these aircraft are Ryanairwith four units, and Alaska Airlines, who acquired three. By contrast, Airbus reported 53 aircraft deliveries in the same period, evidencing a significant competitive advantage.
Boeing hopes this slow order rate is a reflection of a lull in sales ahead of next month’s Farnborough International Airshow, an event where numerous aircraft deals are commonly announced. However, issues with the FAA and production concerns raise questions about how quickly the company can recover.
Despite recent sales figures, according to Bloomberg, Boeing maintains a large order book of more than 5,600 aircraft. This is a sign of hope for the company, although its recent performance highlights the need to address current technical and regulatory issues.
