Boeing set to lose biggest planemaker title as deliveries fall 37%

  • 10/07/2019
Boeing set to lose biggest planemaker title as deliveries fall 37%

Because of the long-term grounding of its bestseller MAX aircraft Boeing Co reported a 37% fall in shipments in the first half of the year. That is why Boeing Co will possibly lose the ownership of being the world's largest aircraft manufacturer.

Boeing shipments lagged behind deliveries of Airbus SE, which on Tuesday announced that it had transferred 389 aircraft over the exact period, which is 28% more than a year earlier. Reuters announced about Airbus delivery numbers on Friday citing sources.

Figures show that Boeing shipments throughout the year probably lag behind their European competitor for the first time in eight years.

A new issue, revealed previous month when using MAX aircraft, led to a delay in commissioning the aircraft, at least until the end of September, disordering the airline’s operating schedule and potentially increasing Boeing costs.

To overcome the consequences after landing, Boeing reduced production to 42 MAX jets per month from 52 earlier, with the result that the airline assumed a charge of $ 1 billion in the first quarter.

Analyst J.P. Morgan Seth Seyfman suggested that the latest postpone may encourage Boeing to think about another reduction in production and order an extra fee in the second quarter, leading to a further decrease in margin by 737.

Shipments of the MAX aircraft were terminated in March after the collapse of the Ethiopian airline, which killed all 157 people on board.

Some analysts decreased their estimates of MAX shipments for the entire 2019, and many think the aircraft won’t be delivered to clients by December.

Jefferies analyst Sheila Kahyaoglu expects no deliveries of MAX in the second and third quarters of 2019, while MAX deliveries for the whole year were about 236. In 2018, Boeing shipped 580,737 units.

The net orders of the American aircraft manufacturer for the first six months were in negative territory, a total of minus 119 net orders, lagging behind Airbus, which won 88 net orders from January to June.

Several airlines possessed sureness in MAX after a deadly disaster when the owner of the British Airways IAG previous month signed a letter of intent to order 200 versions of the aircraft.

Boeing shares rose 0.2% to $ 351,96 In the afternoon.

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