Boeing’s order portfolio is getting a healthy look
Orders for new aircraft of The Boeing Company (BA) are returning to the levels preceding the unsuccessful launch of the 737 MAX airliner. For three years, Boeing had a problem with the sales return of 737 MAX aircraft, whose flights were due to two plane crashes.
By the time found the technical solution was, the COVID-19 pandemic had peaked. As a result, there were practically no orders for Boeing aircraft, and the volume of deliveries was insignificant. Against this background, BA shares are also still below 2019 high. However, the possible boundary of Boeing’s “black band” is already visible.
In 2021, orders for Boeing aircraft averaged 75 aircraft per month, which is comparable to 2015-2017. Currently, the figure has reached 28 jets a month, but now it is only the beginning of the year, besides there are difficulties with deliveries. Nevertheless, in a recent report fourth quarter of 2021, Boeing reported an increase in the supply of commercial aircraft by almost 68% and defense aircraft by 38%.
The pace of Boeing’s recovery is still difficult to predict, as many uncertainties remain. Several months to bring production lines to high output rates, even in the case of positive demand dynamics. Nevertheless, there is one “unconditional” driver: on average, the age of passenger planes for many airlines is two years longer than before the pandemic.
Thus, the fleet of aircraft in the coming years will have to be updated or reduce the number of flights. This aircraft was top-rated at the launch in 2018 when the company received 100 orders a month – mainly the 737 MAX.
