Earlier last month, Boeing 737 Max orders saw a noticeable uptick, fueled by a significant agreement with Southwest Airlines that helped offset a fresh wave of cancellations related to the troubled airliner.
On Tuesday, Boeing announced that it had received a total of 196 orders during March alone. Of those, 100 were from Southwest Airlines. However, the manufacturer also reported 156 cancellations, including Turkish Airlines dropping a commitment for 50 Max jets—some of which were converted into options.
This resulted in a net gain of 40 orders for the month, bringing Boeing’s total order count for the first quarter to 76 aircraft.
Boeing has experienced declining order volumes over the past two years. Initially, the drop was triggered by the global grounding of the 737 Max jets following two tragic crashes. The situation was further compounded by the COVID-19 pandemic, which brought global air travel to a near standstill and drastically reduced demand for new aircraft.
Recently, however, travel has begun to recover, helped by vaccine rollouts and growing confidence among passengers. The resurgence in Boeing 737 Max orders reflects a cautious optimism in the airline industry, even though travel numbers remain significantly below pre-pandemic figures.
In the United States alone, approximately 1.5 million travelers passed through airport checkpoints this month—still well short of the 2.3 million daily average seen in April 2019.
Boeing is counting on sustained growth in air travel to drive demand not only for replacement planes but also to support the expansion plans of its commercial airline clients.
The Chicago-based aerospace manufacturer delivered 29 commercial planes in April. These included 7 wide-body aircraft, 19 Max jets, and three 737s for military use. While delivery numbers are still modest, they signal a positive trajectory in Boeing’s recovery efforts.
Meanwhile, American Airlines announced on Tuesday that it has reached an agreement with Boeing to delay the delivery of 19 787 Dreamliners and 18 Max jets by up to two years. This move is part of a broader strategy to manage fleet costs amid continuing financial strain.
American, one of Boeing’s largest customers, revealed it expects a first-quarter loss of up to $1.3 billion. Despite that, Boeing’s stock saw a 1.5% increase, signaling investor confidence in the company’s gradual comeback.
The renewed interest in Boeing’s aircraft, especially the 737 Max, suggests that airlines are beginning to prepare for a return to normal operations, even if full recovery remains a long-term goal.
Photo Credit: boeing.com