United Cancels More Than Half Its Boeing 737 Max Orders

More tough news for Boeing Co.

United Airlines has informed the airplane manufacturer that it will be taking less than half of the new Boeing 737 MAX jets it originally ordered, according to the aviation blog The Points Guy.

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United will take 16 of the 737 MAX planes this year and 24 in 2021 as it downsizes the airline in the wake of the devastating effects of the coronavirus, which has cut the demand in travel by 90 percent. Less demand means less need for the number of planes, a fact that carriers have already recognized by parking a good majority of their planes.

“When we emerge from this, United Airlines — and the airline industry — is going to look different,” said United President Scott Kirby.

According to TPG, Brazilian carrier GOL canceled orders for 34 737 MAX planes in March, and Southwest Airlines — the largest 737 operator in the world — has delayed the deliveries of some 75 MAX jets due in the next year-and-a-half to 2022 or later.

“We’ve been having intense discussions for the better part of a month with our MAX customers over deliveries,” Boeing President and CEO David Calhoun said April 29.

Kirby said a number of things need to fall into place before people start flying again.

“Disney World needs to be open... Cafes and museums in Paris need to be open before people go back,” he said.