Boeing’s lousy year got even worse last month. In July, the American aerospace giant delivered just four commercial aircraft and booked zero new orders. Moreover, clients scrapped another 43 Max jets purchases in July.
The reduction in deliveries is due to logistical problems caused by the pandemic. The July performance reflects the pandemic-hammered state of the airline industry. Therefore, the aircraft maker cannot do anything about it. However, the company is also struggling with another pressing issue: it has no new orders for jets. Air companies around the world are not eager to buy new jets as they seek to preserve their cash against the background of a record drop in net profit caused by the pandemic. In addition, European competitor Airbus is also making the situation darker for Boeing. In July, Airbus delivered 49 aircraft and registered four new orders. Under current circumstances, Boeing manufactures more aircraft than it is able to sell. Therefore, the company may face financial difficulties in the near future.
Overall, the aircraft industry has been suffering colossal losses for several months. Boeing and Airbus had to cut production significantly amid mass cancellations of orders for new airplanes. According to the International Air Transport Association (IATA), this year, air traffic will be more than 60% lower than last year, and will not return to 2019 levels in the next four years.
