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Boeing Delivered 157 Aircrafts In 2020, Its Worst Showing In Decades

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Boeing Delivered 157 Aircrafts In 2020, Its Worst Showing In Decades

Boeing Co (NYSE: BAannounced it delivered 59 aircrafts in the fourth quarter of 2020, bringing the total 2020 deliveries to 157, down 59% from 2019. 2020 was the worst year for the company since 1973, when it clocked 156 deliveries.

What Happened: The Chicago-based manufacturer saw an uptick in gross 737 Max orders in December to 80 planes, CNBC reported. The 737 Max crisis led to the jetliner's grounding and order cancellations for 20 months. Boeing received FAA clearance to fly the 737 Max in November.

CNBC notes that Boeing saw order cancellations of more than 650 planes in 2020, leading to backlog shrinkage of 1,026 planes, its worst showing. It included accounting adjustments and the removal of aircraft orders that Boeing thought would not be fulfilled.

COVID-19 pandemic and 737 Max crisis were not the only headwinds Boeing faced in 2020. Additional inspections of the more expensive 787 Dreamliner caused more troubles for the company, leading to just 4 deliveries in 2020.

Why It Matters: Though the pandemic hit the entire aviation industry's demand, Boeing lost significant market share to its rival Airbus SE (OTC: EADSY).

The Netherlands-headquartered Airbus delivered 566 planes in 2020, a 34% year-over-year dip. Adjusting for cancellations, it sold 268 planes last year.

Boeing has trimmed 787 production to 5 per month, down from the pre-pandemic goal of 14 per month. "As we continue navigating through the pandemic, we're working closely with our global customers and monitoring the slow international traffic recovery to align supply with market demand across our widebody programs," CFO Greg Smith said.

Price Action: BA shares closed 0.78% higher at $208.41 on Tuesday.

Related News: Airlines Expect Turbulent 2021 After 2020 Erased Two Decades Of Passenger Traffic Growth

Image Courtesy: Wikimedia

 

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