Boeing Co. has largely been out of the spotlight in the last month, as the continuing saga over the fate of its troubled 737 MAX aircraft has taken somewhat of a back seat behind the more pressing woes that have befallen the airline industry due to the coronavirus.
That has changed, as Boeing announced this morning that its customers have canceled orders for 150 of the 737 MAX jets, according to CNBC.
The Federal Aviation Administration grounded the 737 MAX after two fatal crashes last year. The 737 MAX, the company's most popular plane, has not flown in more than a year as it has faced numerous stops and starts trying to solve the software issue that was the cause for the tragedies.
Of the 150 cancellations, 75 came from the aviation leasing firm Avolon and 34 had been ordered by Brazilian airline Gol. CNBC noted there were 31 orders for passenger planes and military aircraft in March, meaning the net cancellations were 119. Still, that means net cancellations for the first three months of the year are now at 307 planes.
Worse, it's likely that airlines will be scaling back on further orders now that the virus has dramatically dropped the demand for travel, forcing carriers to literally park planes on runways.
"We are working closely with our customers, many of whom are facing significant financial pressures, to review their fleet plans and make adjustments where appropriate," Boeing said in a statement. "At the same time, Boeing continues to adjust its order book to adapt to lower-than-planned 737 MAX production in the near term."
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