The aerospace giant Boeing continues to face challenges, as evidenced by its May sales performance, especially with its best-selling 737 Max aircraft. Boeing only received orders for four new 737 Max aircraft in total, failing to earn any new orders for the model for a second consecutive month. This comes after a concerning event that occurred in January, when a side panel on a Max aircraft blew out while in flight, severely affecting passenger confidence.
In contrast, Europe’s Airbus reported net orders for 15 planes in May, despite facing 12 cancellations. The disparity in performance underscores the challenges Boeing is facing in regaining market momentum. Additionally, Boeing saw Aerolineas Argentinas cancel an order for a single Max jet, reducing its net sales for May to three.
The market reacted negatively to these dismal sales figures, with shares of The Boeing Co. falling 3% in afternoon trading. These results add to the poor performance reported in April, when Boeing managed only seven sales, none of which were for the Max. The company is hopeful that the upcoming Farnborough International Airshow in July, a significant event for announcing aircraft deals, will boost orders.
Compounding Boeing’s difficulties, the Federal Aviation Administration (FAA) has imposed a cap on the company’s production of 737s. This decision follows several concerning incidents, including a door plug blowing out from an Alaska Airlines Max and allegations from whistleblowers about Boeing taking shortcuts to accelerate production. Additionally, there have been reports of falsified inspection records on some 787 Dreamliner jets, further tarnishing Boeing’s reputation.
Despite these setbacks, Boeing, based in Arlington, Virginia, managed to deliver 24 jetliners in May, including 19 Max jets. Major customers included Ireland’s Ryanair with four deliveries and Alaska Airlines with three. In comparison, Airbus delivered 53 planes last month.
While Boeing’s recent sales have been slow, the company still holds a substantial backlog of more than 5,600 orders, indicating a potential for recovery if it can address the current challenges and restore customer trust.
