Boeing recently scored a rare win over Airbus in July orders for new planes, but it still lags behind its rival in overall orders for the year. The company reported receiving 72 new plane orders in July, mostly for the troubled 737 Max jet, compared to Airbus’ 59 orders. These orders were primarily from aircraft leasing companies and were a result of the Farnborough Air Show. However, this performance is significantly lower than Boeing’s own numbers from the previous year.
The drop in Boeing’s orders can be attributed to safety concerns surrounding its planes. An incident on an Alaska Airlines flight in January 2023, where a door plug blew off the plane mid-flight, raised questions about Boeing’s safety and quality standards. This led to federal investigations, hearings for Boeing executives, and production limits imposed by the Federal Aviation Administration. These events have tarnished Boeing’s reputation and impacted its orders for new planes.
As of July, Boeing’s full-year gross orders for commercial jets stood at 228, with only 186 net orders after cancellations. This is a significant decrease from the 579 gross orders in the first seven months of the previous year. In comparison, Airbus reported 386 gross orders and 367 net orders for the same period. Boeing’s deliveries have also been affected, with only 218 commercial jets delivered so far in 2023, compared to Airbus’ 400 deliveries.
Deliveries are crucial for Boeing’s financial performance as the company only gets paid when a plane is delivered. The decrease in deliveries this year, coupled with the decline in orders, has impacted Boeing’s attempts to return to profitability since 2019. The company has faced significant financial losses, totaling $33 billion since 2019, highlighting the challenges it has encountered in recent years. Boeing’s struggle to regain its former status as a symbol of American quality is evident in its current performance and order numbers.
Despite the challenges and safety concerns, Boeing continues to work towards improving its operations and regaining customer trust. The company’s recent orders in July show some positive momentum, albeit still trailing behind Airbus. With ongoing efforts to address safety issues and strengthen its reputation, Boeing aims to bounce back from recent setbacks and return to profitability. The company’s ability to recover and compete effectively in the commercial jet market will be closely watched in the coming months.
