The Boeing 737 factory in Renton, Washington, reported another weak month for new plane orders as it grapples with safety and production issues. The company only received orders for four new jets in May, all for the 787 Dreamliner, with none for the troubled 737 Max. This was a significant drop from the prior month’s orders and well below what was reported in May of the previous year.
Although Boeing did secure an order earlier in the year for 85 of its planned 737 Max 10 jets from American Airlines, the majority of its orders in 2024 thus far have been modest. The company’s overall orders decreased by 36% compared to the same period last year due to ongoing concerns about safety and production issues.
The decline in orders has impacted Boeing’s deliveries to customers as well. While it delivered 24 jets in May, the same as April, this was nearly half of the number delivered in May of the previous year. Deliveries are crucial for Boeing’s financial performance as most of the revenue from plane sales is captured at the time of delivery.
Boeing’s shares experienced a more than 3% decline in response to the weak order and delivery numbers. The company’s shares have fallen approximately 30% since the beginning of the year due to ongoing challenges related to production and safety concerns.