In July, Boeing had a rare win over Airbus in new plane orders, with 72 gross orders compared to Airbus’ 59. Most of Boeing’s orders were for the troubled 737 Max jet from aircraft leasing companies, with many of the orders coming from the Farnborough Air Show. However, this is still significantly lower compared to Boeing’s performance last year. Boeing’s orders took a hit after a safety incident in January involving an Alaska Airlines flight, which raised concerns about safety and quality.
Despite the July orders, Boeing’s overall performance for the year is lacking compared to Airbus. In the first seven months of the year, Boeing only had 186 net orders after subtracting canceled orders, a significant drop compared to the 579 gross orders in the same period last year. This is far behind Airbus, which reported 386 gross orders and 367 net orders so far this year. Additionally, Boeing’s deliveries have also been impacted, with only 218 commercial jets delivered this year, a 29% decrease compared to last year.
Deliveries are crucial for Boeing’s efforts to return to profitability, as the company does not get paid until a plane is delivered. Boeing has been facing financial challenges, with losses totaling $33 billion since 2019. This decline underscores how the company has fallen from its reputation as a symbol of American quality. The issues Boeing has faced, including safety concerns and lower orders and deliveries, have contributed to its struggle to turn a profit and regain its reputation.
The ongoing challenges for Boeing have been exacerbated by the fallout from the safety incident and subsequent investigations and hearings. The Federal Aviation Administration has placed limits on Boeing’s production, further impacting its ability to generate revenue. Boeing is working to address these issues and rebuild trust with customers and regulators to improve its business performance and regain its standing in the industry.
Moving forward, Boeing will need to focus on restoring its reputation for safety and quality, as well as increasing its orders and deliveries to boost its financial performance. The company faces tough competition from Airbus, which has outperformed Boeing in both orders and deliveries this year. By addressing these challenges and taking steps to improve its operations, Boeing can work towards returning to profitability and regaining its status as a leading aircraft manufacturer in the industry.
