Published: Wed, July 10, 2019
Global News | By Blake Casey

Boeing poised to lose its place as world's largest planemaker

Boeing poised to lose its place as world's largest planemaker

The company's backlog of unfilled 737 orders, after an accounting adjustment, fell by 10 aircraft to 4,415 from May's results, according to Boeing's website.

Grounded Boeing 737 MAX aircraft are seen parked in an aerial photo at Boeing Field in Seattle, Washington, US July 1, 2019.

American Airlines Group Inc on Wednesday raised its estimate for second-quarter unit revenue as the grounding of Boeing Co's MAX jets left the No. 1 USA carrier with fewer aircraft in service, allowing it to fly fuller planes.

The company, however, said its second-quarter pretax profit would be reduced by about $185 million because it canceled over 7,000 flights in the quarter.

Tuesday's twin reports came a day after Saudi budget airline flyadeal reversed its earlier intention to order 30 Max jets from Boeing and instead put in an order for 30 A320neo jets and took options on 20 more.

Boeing said it delivered 239 aircraft during the first two quarters of the year, a 37 percent drop compared to the first six months of 2018. Boeing delivered two jumbo 747s, the same number as in the first quarter and 10 767s, double the number it delivered in the second quarter of a year ago.

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A few airlines have shown confidence in the MAX since the fatal crash, with British Airways-owner IAG last month signing a letter of intent to order 200 versions of the aircraft. Boeing's Renton, WA facility, where the 737 MAX is manufactured, only shows 23 openings as of this week. Boeing also will likely have to compensate airlines that already own Max planes - almost 400 around the world - which are not expected to be allowed in back into the air any time soon.

The deal with Airbus is worth $5.5 billion at list prices, although discounts are common.

The dearth of Max orders in June marked the third straight month without any new orders for the planes.

Flyadeal, part of Saudi Arabian Airlines Corp., has an all-Airbus fleet.

Deliveries of the MAX aircraft were stopped in March after an Ethiopian Airlines crash killed all 157 people on board.

Shares rose $1.92 to $353.04 in afternoon trading.

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