Boeing orders canceled new sales for sixth month as demand continues to decline

On March 21, 2019, in an aerial photo at the Boeing factory in Renton, Washington, a Boeing 737 MAX airplane parked on the Tarmac.

Lindsey Wasson | Reuters

Boeing customers canceled plans to buy 43 of the manufacturer’s troubled 737 MAX aircraft in July as sales orders were canceled for the sixth consecutive month, the company said on Tuesday.

The manufacturer’s shares eased from the day’s high but were still trading up nearly 4% after Boeing released monthly data.

Boeing said last month that it would cut production targets for some of its aircraft, including the 737 MAX and 787 Dreamliner as the coronovirus epidemic hurt demand for new aircraft.

Through July this year, Boeing has net negative orders of 836 aircraft, of which the company pulled out of its backlog of orders awaiting fulfillment. Boeing routinely takes out orders from its moving tally when customers are financially stressed, among other reasons. The July adjustment cut the Chicago-based aircraft manufacturer’s backlog to 4,496 orders.

Most of the aircraft that canceled the 737 MAX belonged to leasing companies.

The company delivered four airplanes in July, including a 767 fritter and a 777 fritter as well as two 787 Dreamliners.

In March 2019, in the wake of two fatal crashes of the 737 Max, grounding increased Boeing’s troubles, killing 346 people. The Federal Aviation Administration is getting close to allowing planes to fly again, but the company has not yet received final approval.

CEO Dave Calhoun told CNBC late last month that he “expected” that demand for the aircraft would start recovering in the second half of 2021.