Boeing lost 60 orders for troubled Max planes in June with coronavirus vexing carriers
- So far, about 2,480 deliveries of the Max have been postponed by at least a year due to disrupted production, according to Bank of America
- Boeing finds solace in defence business with US$23 billion of F-15 fighter jet orders from Pentagon
Boeing’s order stockpile shrank further last month as more airlines and lessors backed out of commitments for the grounded 737 MAX jetliner in a market devastated by the coronavirus pandemic.
The planemaker recorded 60 cancellations in June, including 47 that were already announced, according to the company’s website Tuesday. The tally excluded Norwegian Air Shuttle ASA’s move to scrap all 97 of its remaining Boeing jets on order, since those deals have not been officially terminated. But the orders in peril from shaky buyers rose by 123 last month.
Customers have scrapped orders as collapsing travel demand complicates Boeing’s efforts to shore up its bestselling plane that is supposed to be a critical source of cash. The Max faces a long, slow comeback after a flying ban imposed in March 2019 following two fatal crashes. So far, about 2,480 deliveries of the Max have been postponed by at least a year due to disrupted production, according to Bank of America.
“Once the aircraft is cleared to fly, the demand outlook for the product is uncertain,” Bank of America analyst Ron Epstein said in a report last week, noting that the Max is “strategically disadvantaged” compared with its Airbus counterpart, the A320neo.
“When demand returns to commercial aerospace, we expect operators to choose the untainted programme first, before opting to order a Max,” Epstein said.
Boeing stock has slumped by 50 per cent over the past 12 months, shrinking its market value to US$101.6 billion.