Boeing sees more 737-Max orders cancelled in July

Boeing customers continued to cancel orders for its 737-Max plane in July

Boeing lost another 43 orders for its grounded 737-Max planes in July, bringing the total cancellations for the jet this year to 398, while delivering only four of its other aircraft to customers, monthly numbers show.

Based on a tighter accounting standard, Boeing said order cancellations now stand at 857 for the Max, whose recertification is still hanging in the balance more than a year after its worldwide grounding due to two fatal crashes.

The four deliveries — one each of 767 and 777 freighters and two 787 Dreamliners — were down from 19 a year earlier, taking the total to 74 planes so far this year. Boeing delivered a record 806 aircraft in the whole of 2018, before the 737-Max crisis erupted.

Airlines pay most of the purchase price when they take delivery of an aircraft, so the lack of deliveries is a direct hit to a planemaker’s revenue.

Boeing did not win any new orders in July and its cancellations include 35 previously scratched orders for the 737-Max by Dublin-based aircraft lessor AerCap Holdings and Kuwaiti aircraft-leasing company Alafco.

Fresh 737-Max cancellations last month were by Canada Jetlines, which struck off five orders, Avolon scrapped two orders, and a business jet customer cancelled one order.

Additionally, Boeing removed nine 737-Max planes from its backlog to adjust for jets ordered in previous years but unlikely to be delivered currently.

-Reuters