Boeing order cancellations exceed new sales for sixth consecutive month as demand continues to decline

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An aerial photo shows Boeing 737 MAX planes parked on the tarmac at the Boeing factory in Renton, Wash., March 21, 2019.Lindsey Wasson | Reuters

Boeing customers canceled plans to buy 43 of the manufacturer’s ailing 737 Max in July, as scrap orders exceeded sales for a sixth consecutive month, the company said on Tuesday.The manufacturer’s shares eased from the day’s highs, but still traded near 4% after Boeing released monthly data.

Last month, Boeing announced it would reduce production targets for some of its planes, including the 737 Max and 787 Dreamliner, as the coronavirus pandemic continues to hamper demand for new planes.

This year through July, Boeing recorded negative net orders for 836 planes, including planes the company has removed from its backlog of backlog. Boeing regularly removes orders from its open tally when customers are facing financial hardship, among other reasons. The July adjustments reduced the Chicago-based aircraft manufacturer’s backlog to 4,496 orders.

Most of the 737 Max cancellations came from aircraft rental companies.

The company delivered four planes in July, including one 767 freighter and one 777 freighter as well as two 787 Dreamliners.

The pandemic adds to Boeing’s problems since the 737 Max grounded in March 2019 in two fatal crashes that killed 346 people. The Federal Aviation Administration is getting closer to allowing planes to fly again, but the company has yet to get final approval.

CEO Dave Calhoun told CNBC late last month that he hoped demand for planes would start to pick up in the second half of 2021.

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