Boeing's commercial airplane sales have hit a rough patch, with no net sales of its 737 Max in the past two months. According to the Associated Press, the company's latest-generation 737 saw zero net orders in April and May, a stark contrast to its usual sales pace.
In May, Boeing managed to sell only three other aircraft, after Aerolineas Argentina canceled an order for a single 737 Max, offsetting four orders received earlier. April was similarly sluggish, with net sales of just seven planes, none of which were 737 Max models. This slowdown comes amid heightened consumer and airline concerns about the safety of Boeing's aircraft following the January Alaska Airlines door plug incident.
Why Sales Are Slowing
The FAA has capped 737 production in the wake of the January incident, which may be contributing to the sales dip. Additionally, increased media coverage of flight and equipment issues, along with the deaths of two Boeing whistleblowers and congressional testimony from others, have cast a shadow over the company's reputation.
Boeing is reportedly hopeful that the lull is temporary, with buyers possibly waiting for the Farnborough International Airshow next month, a major industry event where deals often materialize. However, the company's challenges are mounting, including a record sales decline that began in 2019 and ongoing investigations.
Existing Orders Remain Strong
Despite the sales slump, Boeing's backlog of orders remains substantial, with over 5,600 planes on order. Last month, the company delivered 27 jetliners, including 19 Max jets, indicating that production and deliveries continue despite the sales pause.
Boeing's CEO is scheduled to testify before Congress later this month, adding to the pressure. While the company may weather this storm, rebuilding consumer trust could take time.
