Boeing posted a rare win over Airbus in July orders for new planes, but it still badly trails its rival in orders so far this year, as safety concerns continue to dent the company’s reputation.
The embattled aircraft maker reported it took in gross orders for 72 new planes in July, compared to the 59 reported by Airbus. Most of the orders were from aircraft leasing companies for Boeing’s troubled 737 Max jet. And many were tied to the Farnborough Air Show in July, which is the site of many commercial jet sales.
But it’s a relative drop in the bucket for the American airplane manufacturer compared to its own performance last year.
Boeing’s orders plunged in the wake of a January 5 Alaska Airlines flight in which a door plug blew off the plane as it approached 16,000 feet, leaving a gaping hole in the side of the jet.
The pilots landed the jet without any serious injuries to crew or passengers, but the incident raised questions about Boeing’s safety and quality, with several federal investigations and rounds of hearings for Boeing executives before angry government officials, along with limits on its production put in place by the Federal Aviation Administration.
The July orders brought full-year gross orders to only 228 commercial jets. Subtracting canceled orders, Boeing had only 186 net orders in the first seven months of the year. That’s well less than half of the 579 gross orders in the first seven months of 2023 and trails the 386 gross orders and 367 net orders that Airbus has reported so far this year.
Boeing also reported Tuesday that it delivered 43 jets to customers in July, the same number in July 2023 and slightly behind the 44 it delivered in June. But deliveries are down 29% this year compared to 2023, limited to just 218 commercial jets. Airbus has delivered 400 jets through the first seven months of this year.
Deliveries are crucial to Boeing’s attempt to return to profitability for the first time since 2019 as it doesn’t get paid until a plane is delivered, for the most part.
Boeing has lost $33 billion since 2019 – an eye-popping number that underscores how far the company has fallen from the days when its operations were a byword for American quality.
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Source Agencies
