Boeing Received Only 1 New Order in May; Stock Tumbles

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Key Takeaways

  • Boeing shares fell Tuesday aft nan pitchy shaper reported May deliveries fell by much than half from nan aforesaid period a twelvemonth ago.
  • The institution received conscionable 1 caller bid for 4 planes successful nan month, good short of competitor Airbus's orders for 27 aircraft.
  • Boeing has been barred from expanding accumulation of its best-selling model, nan 737 MAX, since precocious January aft an Alaska Airlines formation mislaid portion of its fuselage midflight.

Boeing (BA) shares slumped connected Tuesday aft nan pitchy shaper reported deliveries fell by much than half successful May compared pinch nan twelvemonth before, arsenic nan patient continues to grapple pinch nan fallout of January’s door-plug blowout. 

Boeing’s bid measurement declined importantly successful May. The institution received conscionable 1 caller bid for 4 jets past month, compared to 7 planes crossed 3 orders successful April. Its backlog declined to 5,625 from 5,646 successful April.

Deliveries Down As 737 Max Fallout Continues

The 737 MAX is Boeing’s best-selling plane, but nan Federal Aviation Administration (FAA) successful January barred nan institution from expanding production of nan exemplary aft an Alaska Airlines formation lost portion of its fuselage mid-flight. The FAA and Department of Justice some launched investigations into Boeing soon thereafter. The FAA is besides overseeing nan improvement of a scheme to overhaul Boeing's information and value power standards.

Boeing delivered 24 planes past month, down from 50 successful May 2023. Nineteen of those craft were 737 MAX jets, 3 much than successful April but 16 less than successful nan anterior year. Meanwhile, Airbus (EADSY), Boeing’s largest competitor, delivered 53 planes past period and received orders for 27.

Boeing shares were down almost 2.4% astatine astir $186 arsenic of 3:10 p.m. Eastern Time Tuesday. They person mislaid astir 30% of their worth truthful acold this year.

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