Boeing’s deliveries have fallen by roughly two thirds as the American manufacturer today announced a $641 million loss for the first quarter of 2020. The news comes more than a year after the 737 MAX was grounded.
Boeing is, for the time being, stuck in a rather unpleasant space in terms of aircraft production. The company has been forced to suspend production of the 737 MAX, previously one of its big sellers. Additionally, some of its older widebody products are falling out of favor. This means that the company is pinning most of its deliveries on the Boeing 787 Dreamliner. Consequentially, the aerospace giant today announced a first quarter loss of $641 million.
Second quarterly loss
Three months ago, on the 29th of January, Boeing posted its first annual loss for almost a quarter of a century. However, things haven’t improved since then, as Boeing has published its second quarterly loss in a row.
Today the company announced a net loss of $641 million for the first quarter of 2020. This couldn’t be more different from a year ago. For the first quarter of the previous year, Boeing made a net profit of $2.149 billion. Of course, this was before the effect of the 737 MAX crisis kicked in. With airlines beginning to reassess deliveries in the current crisis, could it get even worse?
Deliveries are significantly down
Deliveries of Boeing aircraft have fallen dramatically year on year. As most of the payment for an aircraft is given upon delivery, this has affected incoming cash for Boeing. In the first three months of 2020, the American aerospace manufacturer delivered just 50 aircraft, down from 149 the previous year.
The majority of aircraft delivered were 787 Dreamliners (29). Given the 737 MAX grounding, only five 737 NGs were delivered. Last year, the company delivered 89 737s in the same period. Zero 747s were produced as the Queen of the Skies’ popularity continues to fall in an era of efficiency.
Meanwhile, ten 767s and six 777s were delivered. Boeing had intended to begin providing the first 777Xs this summer. However, delays to the program have meant that this is now not expected until next year.
A rough year for Boeing
The past year to date has been particularly rough for Boeing. In March 2019, the aerospace giant was forced to ground its popular 737 MAX after two fatal crashes in similar circumstances. Then, in the summer, the 777X missed its expected debut at the Paris Air Show due to engine issues.
This has all been tied in with several smaller stories here and there including the 777X failing a static pressure test, and the ongoing effect of the Trent 1000 engine issue on Boeing 787s (although this in itself is not a problem caused by Boeing).
What do you think of Boeing’s most recent quarterly figures? Let us know your thoughts in the comments!