The last canceled orders were for the 737 Max, their best-selling jet, which has been grounded since March 2019 after two fatal accidents that killed 346 people. But despite the widespread groundbreaking, Boeing did not begin to see a stream of canceled orders until the Covid-19 pandemic almost stopped air travel and caused massive losses in the entire airlines.
Boeing announced 377 canceled orders by the first half of this year, of which 60 in June. Most of the latest canceled orders came from aircraft leasing companies, which buy the jets, lend them to airlines and collect rental rent.
In addition to the canceled orders of July, Boeing classified nine jet orders as no longer certain enough to count in the backlog of orders of the company. This can be caused by financial problems with an airline customer or by an airline customer who informs Boeing that he wants out of the order. Details about that cancellation have not yet been finalized.
Boeing had no new orders for jets last month.
Even with orders canceled and reclassified, Boeing still has about 4,500 aircraft in its backlog of orders. But their main customers – passenger companies – are not afraid to deliver the jets because they are trying to save their money.
Boeing delivered only four jets, two 787 Dreamliners and two cargo ships in July.
It is the same number of aircraft that Boeing delivered in May, when production dropped to a nearly 12-year low.
In May, the company increased production following a closure of its factories in response to health care. But the slow deliveries of July are another sign of the low demand for jets. Most airlines have grounded a significant percentage of their fleets and operate on only a fraction of their pre-pandemic schedule.
The lack of deliveries is bad news for Boeing, which receives the majority of the revenue from the sale of an aircraft at the time of delivery.
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