CNN

This is what good news looks like in the aviation industry: Boeing’s canceled orders slowed

Jun 9, 2020, 12:01 PM | Updated: 12:04 pm

Mandatory Credit: Photo by YONHAP/POOL/EPA-EFE/Shutterstock (10471752a)
The production line of Boei...

Mandatory Credit: Photo by YONHAP/POOL/EPA-EFE/Shutterstock (10471752a) The production line of Boeing's Everett factory in Seattle, Washington, USA, 06 November 2019. Boeing production line, Seattle, USA - 11 Nov 2019

(10471752a)

(CNN) — After three months of massive order cancellations for new jets, the bad news on canceled orders continued — but slowed — for Boeing in May.

Boeing’s deliveries ground to a near halt. But the company reported only 14 canceled orders for the troubled 737 Max last month. Boeing reported 46 canceled orders in February, followed by 150 in March and 108 in April, as the world’s airlines’ finances crumbled. Air travel ground to a near halt during the Covid-19 pandemic.

So it is relatively good news to have only 14 canceled orders for the Max, which has been grounded for more than a year following two fatal crashes that killed 346 people.

Still, it was hardly a good month for Boeing.

Last month, customers also canceled four cargo freighter jets, but those orders were basically changed to other freighter models or customers, as part of nine freighter orders posted in the month, one for FedEx, one for UPS, and other customers that Boeing did not identify.

The nine orders for freighters were the only new orders it received. And despite the reopening of plants in late April that were shut for safety reasons during the pandemic, it delivered only four jets in the month. That’s the lowest delivery total since November 2008, when the company was emerging from a strike that shut production. It delivered six jets in April when its plants were shut for most of the month.

Three of May’s four deliveries were also freighters and one was of an earlier version of the 737 used by the military. Passenger airlines had no real desire to take delivery of the planes as they conserved cash.

The low deliveries are a problem for Boeing because that’s when it gets most of the revenue from completing a sale.

Boeing also removed 77 jet orders from its backlog of more than 4,700 commercial jet orders. Those orders were not canceled. But accounting rules mean that Boeing can no longer count on those orders being certain because of the financial condition of the customer or the timing of the delivery plans. So far this year, Boeing has dropped 338 additional jets from its backlog count for this reason.

Still, Boeing has years worth of plane production in its backlog. Still the company has cut it planned rate of production and announced plans to trim its workforce by 16,000 jobs through voluntary buyouts and layoffs due the the troubles in the airline industry.

The good news is travel demand is improving, at least among US passengers.

The number of people being screened by the TSA at US airports hit 400,000 a day on Friday and Sunday for the first time since mid-March, and American Airlines is adding back flights to its schedule for July. Both are still at a fraction of year-ago levels, though.

The signs of improvement in demand for air travel has been enough to help lift shares of both Boeing and US airlines significantly in the last week. Shares of Boeing were lower in trading Tuesday ahead of the orders and deliveries report which came out at 11 am ET.

The-CNN-Wire
™ & © 2020 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

CNN

Outside of the Yale University Law School is pictured on September 27, 2018 in New Haven, Connectic...

Zenebou Sylla, CNN

Some New England universities, including Yale, break $90,000 barrier for total tuition cost in upcoming school year

(CNN) — Several New England universities and colleges, including Yale, have reached a pinnacle of at least $90,000 for undergraduate tuition and costs starting this fall. Yale University, Tufts University, Boston University (BU), and Wellesley College are among a few private institutions that will top this year’s costs for tuition, housing and other expenses, according to […]

1 day ago

Former senator Joseph Lieberman...

Jake Tapper, CNN

Former Sen. Joe Lieberman dies at 82

Former Democratic vice presidential nominee and Sen. Joe Lieberman has died, according to a statement from his family.

1 day ago

Doughnuts are displayed for sale at a Krispy Kreme store on February 13, in Austin, Texas. Krispy K...

Ramishah Maruf, CNN

Krispy Kreme doughnuts are coming to McDonald’s

The Krispy Kreme doughnuts will be available nationwide at participating restaurants by the end of 2026, after a phased rollout beginning later this year.

2 days ago

The Federal Trade Commission is investigating TikTok for its data and security practices, two sourc...

Brian Fung and Samantha Delouya, CNN

FTC investigating TikTok over privacy and security

The probe is yet another complication for the social media platform. It's already facing the threat of a potential US ban or a forced divestment from its Chinese parent company.

2 days ago

A hand holds a tablet stamped with "MF," standing for mifepristone....

CNN

Study shows how self-managed abortion became more common, as Supreme Court abortion drug hearing looms

Medication abortion has become increasingly common since it first became available in the United States two decades ago.

3 days ago

People place flowers at a memorial outside Crocus City Hall in Moscow on Sunday following Friday's ...

Sophie Tanno, Eve Brennan, Anna Chernova and Darya Tarasova, CNN

Thousands gather in Russia to mourn victims of concert hall attack

Russia on Sunday held a day of mourning after at least 137 people were killed in a terrorist attack on a concert venue in Moscow.

4 days ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

This is what good news looks like in the aviation industry: Boeing’s canceled orders slowed