News
Boeing reports 323 net cancellations in first half 2020
July 17th 2020
Boeing's latest orders and deliveries figures showed the manufacturer ended the first half of calendar 2020 with net cancellations of 323 aircraft as a raft of customers sought to cancel orders for the 737 MAX. Read More »
The aerospace manufacturer said there were 355 cancellations for the 737 MAX in the six months to June 30, alongside net cancellations for one 747 and one 777. There were net orders for nine 767s and 25 787s.
Boeing delivered 70 commercial aircraft in the half: nine 737s, one 747, 14 767s, 10 777s and 36 787s. This was down from 239 deliveries in the first half of calendar 2019.
Boeing chief financial officer, Greg Smith, said the 2020 deliveries reflected the "significant impacts of the COVID-19 pandemic on our customers and our operations that included a shutdown of our commercial airplane production for several weeks".
"We have and will continue to work with our customers on specific timing and adjustment to deliveries," Smith said in a statement.
Smith, who also is Boeing’s executive vice president of enterprise operations and interim leader of communications, said the company was seeking feedback from airlines about their needs in the difficult market conditions.
"We continue to closely monitor the commercial marketplace by staying very engaged with our customers around the globe to fully understand short term and long term requirements," Smith said.
"All of this is informing current and future production rates and any further adjustments as needed to balance supply and demand going forward.
"The diversity of our portfolio, including our government services, defence and space programs, will continue to provide some stability as we navigate through the pandemic and rebuild stronger on the other side."
The 737 MAX has been grounded since March 2019, following two fatal accidents that killed 346 people. The U.S. Federal Aviation Administration (FAA) said at the start of June it had completed flights tests on the 737 MAX as part of the re-certification of the aircraft.
While it described the completion of the flights as an important milestone, the FAA said there were a number of key tasks still to be completed that included evaluating the data gathered during the flight tests.
"The agency is following a deliberate process and will take the time it needs to thoroughly review Boeing’s work," the FAA said in early July. "We will lift the grounding order only after FAA safety experts are satisfied that the aircraft meets certification standards."
