Boeing's sales are yet to make progress.
In the month of May, Boeing received orders for four new aircraft, all of them being the 787 Dreamliners and none for the embattled 737 Max. This is a significant drop from the previously recorded seven gross orders in April, and a far cry from the massive 69 jets ordered in May of 2023. In total, Boeing has received 142 jets in orders this year, marking a 36% decrease compared to the first five months of 2023.
Notably, in March, the company received an order from American Airlines for 85 737 Max 10 planes, which made up the majority of their orders for the year. However, this particular model of the plane is yet to be approved by the Federal Aviation Administration (FAA) for passenger use.
Since a 737 Max jet experienced a door plug blowout on a January 5 Alaska Airlines flight, raising safety concerns and leading to several investigations, orders for Boeing jets have seen a significant decline. This downfall was mainly due to airlines' eagerness to increase their capacity in response to the growing demand for passenger travel.
Boeing's customer deliveries were also affected, with the company managing to deliver only 24 planes in May, matching the number from April. This is less than half of the 50 planes it delivered in May of 2024. The decline in year-to-date deliveries stands at 36%, and they hold significant importance for the company's financial results as most of its money comes when delivering a plane to the customer.
As a result, Boeing's share price dropped more than 3% after the report, with the shares being down by about 30% for the year so far. The company is also a part of the Dow Jones industrial average.
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Despite the drop in orders, Boeing still sees potential in the business, planning to showcase its 777X in Paris later this year, hoping to revive interest in its larger jets.
Moving forward, the company is focusing on improving its safety protocols and addressing concerns related to the 737 Max, with an aim to regain the trust of its customers and boost business sales.
