An aerial photo shows Boeing 737 MAX aircraft parked on the asphalt at the Boeing Factory in Renton, Washington, March 21, 2019.
Lindsey Wasson | Reuters
Boeing customers canceled plans to buy 43 of the manufacturer’s troubled 737 Max planes in July because rejected orders sold off sales for a sixth consecutive month, the company said Tuesday.
Shares of the manufacturer declined from the height of the day, but were still up nearly 4% after Boeing released the monthly data.
Boeing said last month that it would cut production targets for some of its aircraft, including the 737 Max and the 787 Dreamliner, as the coronavirus pandemic continues to hurt demand for new aircraft.
This year through July, Boeing has net negative orders from 836 aircraft, including aircraft that pulled the company out of its backlog of orders pending fulfillment. Boeing routinely removes orders from its rally if customers are financially penalized, among other reasons. The July adjustments cut the Chicago-based aircraft maker’s backlog to 4,496 orders.
Most of the cancellations of 737 Max were from aircraft leasing companies.
The company delivered four aircraft in July, including a 767 cargo ship and a 777 cargo ship as well as two 787 Dreamliners.
The pandemic adds to Boeing’s problems since the March 2019 crash of the 737 Max in the wake of two fatal accidents that killed 346 people. The Federal Aviation Administration is approaching to allow the aircraft to fly again, but the company has yet to gain final approval.
CEO Dave Calhoun told CNBC late last month that he would begin to restore “hopeful” demand for aircraft in the second half of 2021.
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