Boeing’s 2020 MAX cancellations near 400 in July

By Eric M. Johnson and Ankit Ajmera

(Reuters) – Boeing Co lost another 43 orders for its grounded 737 MAX planes in July, bringing the total cancellations for the jet this year to 398, while delivering only four of its other aircraft to customers, monthly numbers showed on Tuesday.

Based on a tighter accounting standard, Boeing said order cancellations now stand at 857 for the MAX, whose recertification is still hanging in the balance more than a year after its worldwide grounding due to two fatal crashes.

The four deliveries – one each of 767 and 777 freighters and two 787 Dreamliners – were down from 19 a year earlier, taking the total to 74 planes so far this year. Boeing delivered a record 806 aircraft in the whole of 2018, before the 737 MAX crisis erupted.

Airlines pay most of the purchase price when they take delivery of an aircraft, so the lack of deliveries is a direct hit to a planemaker’s revenue.

Boeing did not win any new orders in July and its cancellations include 35 previously scratched orders for the 737 MAX by Dublin-based aircraft lessor AerCap Holdings and Kuwaiti aircraft leasing company Alafco.

Fresh 737 MAX cancellations last month were by Canada Jetlines, which struck off five orders, Avolon scrapped two orders and a business jet customer canceled one order.

Additionally, Boeing removed nine 737 MAX airplanes from its backlog to adjust for jets ordered in previous years but unlikely to be delivered currently.

On an adjusted basis, a total of 52 more planes were canceled last month, bringing lost orders to 836 for the year as of July end. The company’s gross orders, without cancellations, were 59 planes in the first seven months of 2020.

(Reporting by Eric M. Johnson in Seattle and Ankit Ajmera in Bengaluru; editing by Patrick Graham and Anil D’Silva)