Airlines reports cancellation of over 300 Boeing 737-MAX orders in 2020

Boeing has announced that once the 737-MAX meets airworthiness standards, the aircraft may not be added to airline fleets, the company said.

The Chicago-based manufacturer reports over 300 737-MAX orders were cancelled in the first six months of 2020, despite the return of flight trials with the Federal Aviation Administration.

A number of airlines have cancelled orders for the aircraft over the first six months of the year. Data released by the Chicago-based manufacturer shows airlines cancelled 373 MAX orders between January and June 2020.

Across the commercial aircraft division, Boeing lost 784 net orders in 2020, driven primarily by the novel Coronavirus pandemic. In total, airlines cancelled 373 orders for the Boeing 737-MAX. It is unclear how many of each variant were cancelled by each carrier.

In addition, Boeing lost 382 total orders this year due to contractual changes. Another 461 orders were subtracted due to ASC 606 contract changes through June 30, 2020.

The aircraft cancellations come as airlines work to either trim their fleets of aircraft with high operational costs, or defer orders into the future. In their quarterly report to the US Securities and Exchange Commission, Delta Air Lines noted they would defer aircraft deliveries to future years. In the United Kingdom, Virgin Atlantic also said they would retire a number of aircraft, reducing their fleet to under 40 aircraft.

Boeing was able to earn some orders over the first six months of 2020. The 59 gross orders earned by Boeing include 12 787 Dreamliners from All Nippon Airways, and five freight aircraft from FedEx and UPS.

According to their website, the company currently has a backlog of over 4,000 airframes. Boeing is not currently producing any aircraft in the 737 line.