Boeing's orders, deliveries of new aircraft fall in 1Q
S&P Global portfolio manager Erin Gibbs and Payne Capital senior wealth advisor Michelle McKinnon discuss the problems surrounding Boeing and whether the financial sector will post strong earnings.
Boeing’s orders for new aircraft fell by nearly half in the first three months of 2019 as the Chicago-based manufacturer continues to reel from the international grounding of its 737 Max fleet.
Overall, orders in the first quarter were 95, down from 180 orders a year ago. The company received no new orders for the 737 in March, after getting 10 new orders between January and February. The fall comes months after a Lion Air crash involving the Max, but before the Ethiopian Airlines crash on March 10 that led to the grounding of the fleet in the U.S., the U.K., China and other nations.
Boeing delivered 11 new Max jets in March, none after operations of the plane were halted. Overall, the company delivered 149 jets in the first three months, down from 184 a year ago.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 155.07 | +0.48 | +0.31% |
Last week, Boeing said it would cut production of its Max jet, the latest version of its popular 737 jet that is central to the company’s ability to continue to compete with rival Airbus SE.
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Experts say Boeing stands to lose billions of dollars in earnings in 2019 as a result of the issues with the Max.
A slower production schedule will result in a “sizable, albeit still hard to quantify, financial penalty to 2019 results,” Cowen analysts wrote in a recent note