Boeing Plane Deliveries Tumble So Far in 2019--Update
14 August 2019 - 5:27AM
Dow Jones News
By Patrick Thomas and Austen Hufford
Boeing Co. delivered fewer planes in July than in any month for
the past decade, furthering the financial blow to the aerospace
giant brought by the grounding of its 737 MAX jetliner.
Boeing's deliveries for the year through July totaled 258
planes, down from 417 planes in the same period a year earlier and
the smallest number for that time frame since 2007. The 19 planes
the Chicago-based company delivered in July was the lowest monthly
count since the four deliveries it made in November 2008 during the
financial crisis.
Airbus SE shipped 458 planes in the first seven months of this
year, putting the European company on track to surpass U.S. rival
Boeing as the world's biggest aircraft manufacturer on the
year.
Boeing's shares rose 0.7% on Tuesday, and shares in Airbus were
up 1.5%.
July was the fifth straight month without any new orders for the
737 MAX, Boeing said Tuesday. The plane has been grounded by
regulators around the globe since March following two fatal crashes
in less than six months.
The crashes of MAX jets operated by Ethiopian Airlines and
Indonesia's Lion Air killed all 346 people on board the two
flights. More than 100 lawsuits have been filed against Boeing, and
the aerospace giant has been negotiating settlements with victims'
families. Meanwhile, it has pledged $100 million in financial
support for families and communities impacted by the crashes.
Boeing has said it hopes the 737 MAX will resume flights in the
fourth quarter, but some airlines and regulators have said it will
take longer for the plane to be cleared pending fixes to its
software.
The prolonged grounding is weighing on airlines and Boeing
suppliers. Some plane parts makers have cut production, while some
carriers have had to cut back on service.
Boeing, whose shares are down nearly 25% from a recent high in
March, said it will set aside about $5 billion to compensate
airline customers hampered by the MAX's absence.
More than 150 undelivered MAX jets are parked at sites around
the U.S., along with the 380 in airlines' hands that were grounded
by regulators in March.
Last month Boeing lost an order for 50 MAX planes from a Saudi
Arabian budget carrier. Flyadeal said it would instead buy up to 50
A320neo planes from Airbus.
The MAX delivery delays have disrupted flight schedules for
airlines, especially in fast-growing aviation markets like
Southeast Asia. With their capacity stretched, airlines have
delayed plane retirements and cut some routes.
Southwest Airlines Co. sped up its decision to stop flying at
New Jersey's Newark Liberty International Airport because of the
grounding of its MAX fleet. American Airlines Group said last month
that the Boeing grounding would likely shave $400 million off its
earnings in 2019.
Boeing said deliveries through July for the 777 and 787
Dreamliner, were 24 and 90, respectively.
Write to Patrick Thomas at Patrick.Thomas@wsj.com and Austen
Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
August 13, 2019 15:12 ET (19:12 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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