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Boeing's Sales Decline 70% In First Half Of 2024

VinFast expects sales to founder's taxi venture to extend into 2024

Boeing recently announced that it had sold a total of 14 new jets in the past month, with the majority of these sales being freighter aircraft. Notably, one of these sales was to replace a plane that experienced a door plug blowout during a flight just over six months ago.

Out of the 14 jets sold, only three were 737 Max aircraft. Two of these were purchased by an unidentified customer, while the third was acquired by Alaska Airlines to replace the plane involved in the door plug incident that occurred at an altitude of 16,000 feet on January 5.

The remaining 11 jets sold were 777 freighters, marking one of Boeing's better sales months this year. However, despite this improvement, the company's gross sales for the first half of 2024 were down by 70% compared to the previous year. The 14 gross sales in the past month represent an increase from the four sold in May and seven in April but are significantly lower than the 304 gross orders received in June 2023.

Boeing has experienced a significant decline in sales following the Alaska Air incident, as airlines have been cautious about expanding their fleets amidst Boeing's ongoing challenges. The company had a strong sales month in March, selling 113 planes, primarily due to a large order from American Airlines. However, this order was for a longer version of the 737 Max, which has yet to be certified by the Federal Aviation Administration for passenger flights, with certification now delayed until at least 2025 due to issues stemming from the Alaska Air incident.

Boeing recently pleaded guilty to employees defrauding the FAA during the original certification process for the 737 Max and could face additional criminal charges related to the Alaska Air incident. The specific 737 Max 10 aircraft sold to Alaska Airlines to replace the plane involved in the door plug incident has been repurchased by Boeing, although the company has not disclosed its plans for the aircraft following its repurchase.

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