Boeing, the US aircraft maker, announced on Tuesday its worst annual net orders in decades, and its lowest numbers for aircraft deliveries in 11 years, with a significant retreat from its main competitor Airbus due to the suspension of the 737 Max.
Boeing, based in Chicago, said it had received, in light of cancellations and changes to previous orders, no more than 54 new aircraft orders in 2019, and delivered less than half of the number it delivered a year ago, to lose the lead in favor of its European rival for the first time in eight years.
Total orders plunged 77% to 246 in 2019. After an accounting adjustment in light of previous years' orders that are now unlikely to be delivered, Boeing said the net total orders for the year had fallen to minus 87 aircraft.
The company said unnamed customers canceled orders for three 787-9 aircraft last December, and that another customer canceled an order for the 787-8.
Ten months after flying Max was prevented after two damaging crashes, believed to be caused by aircraft systems malfunctions, Boeing still has an order book for more than 5,400 commercial and medium-haul aircraft.
Airbus
By comparison, Airbus said earlier this month that it had received 768 net orders last year after the cancellations, and had delivered a record number of 863 aircraft.
Boeing said on Tuesday that deliveries fell 53% to 380 aircraft over the past year as the suspension of Max's operation prevented aircraft from being delivered to customers, forcing them to stop production earlier in the month.
Aircraft manufacturers get most of their revenue when delivering aircraft - after deducting any progress payments that have already been made - which increases the importance of deliveries to their financial condition.
Analysts estimate that Boeing is losing about a billion dollars a month due to the prevention of overflight.
The company announced a negative free cash flow of about $ 3 billion in the third quarter of 2019. The fourth quarter numbers will be released on January 29.
Boeing separated from its chief executive, Dennis Mullenberg, last month when it appeared unable to achieve a breakthrough to resolve the crisis.
The company is still working on repairing the Max plane, and it is unclear when it might get a green light from regulators to bring it back into service, which worries analysts and investors about its opportunities in 2020.
Ramifications
US Treasury Secretary Stephen Mnuchin said last Sunday that Boeing's problems could reduce gross domestic product by about half a point, but economic growth would remain at around 2.5%.
The market value of the American company fell more than 50 billion dollars, following the ban on the flight of Boeing 737.