Boeing Co.’s second-quarter jet deliveries slid 54% from a year earlier to 90 aircraft, reflecting the toll from a global grounding of its best-selling 737 Max after two fatal crashes.
The planemaker hasn’t delivered any Max aircraft, the company’s largest source of profit, since regulators banned commercial flights on March 13, days after an Ethiopian Airlines jet plunged into a field shortly after takeoff. Boeing did deliver 24 of an earlier 737 model during the quarter, along with 42 of its 787 Dreamliner.
Boeing’s commercial aircraft sales have also slowed after the tragedies and amid heightened U.S.-China trade tensions and economic uncertainty. The Chicago-based manufacturer is down 119 for the year with the 737 shedding 180 orders due to cancellations, conversions and an accounting rule.
The results trailed archrival Airbus SE, which signed contracts for 145 planes in June. That put Airbus’s first-half total into positive territory at 88, as cancellations had previously outweighed new sales.
The tallies are closely watched by investors and analysts trying to assess the financial fallout of the Max crisis for Boeing ahead of its July 24 earnings release. While customer payments have slowed, Boeing is still building 737s at a 42-jet monthly clip and stockpiling completed airplanes around the Seattle area and as far afield as San Antonio, Texas.
The growing inventory costs of the undelivered planes is draining about $3 billion a quarter from Boeing, Cai von Rumohr, an analyst with Cowen & Co., estimated in a July 8 report. Cash generated from 787 Dreamliner deliveries, defense and services sales should soften some of the blow, he said.
The company’s backlog of unfilled 737 orders, after an accounting adjustment, fell by 10 aircraft to 4,415 from May’s results, according to Boeing’s website.
Boeing shares rose 0.5% to $352.81 at 2:59 p.m. in New York. Boeing wa up 8.9% so far this year through Monday, compared with a 19% rise on the S&P 500 Index. Airbus has risen 48% this year.
Toulouse, France-based Airbus booked a slew of jetliner deals from last month’s Paris Air Show, dragging the company out of one of the thinnest sales periods in its recent history.
Airbus’s Paris total was boosted by the launch of an extra-long-range variant of its A321 narrow-body jet, which accumulated 44 firm orders, excluding conversions from other models.
Airbus’s June bookings included 30 A320neo-family jets from an order made by Saudi Arabian Airlines. The planes are destined for Saudia’s discount subsidiary, Flyadeal, which walked away from a tentative commitment to take as many as 50 of Boeing’s Max jets.
The gap in deliveries suggests Airbus has a strong chance of wrestling back the crown of world’s biggest planemaker in 2019 after a seven-year gap. Boeing held on to the title by just six jets in 2018 after both companies kept their factories running through the year-end holidays.