Boeing Downgrades Dozens of Orders amid Geopolitical Concerns

DALLAS - Boeing has removed 141 aircraft from its backlog of pending orders, some due to the conflict in Ukraine and sanctions against Russia.

According to the American manufacturer, about two-thirds of the 130 Boeing 737s removed from the backlog were done so for geopolitical reasons such as international sanctions. As a result, 85 to 90 sales need to be reconsidered.

Boeing did not identify the customers whose orders were removed. The company previously stated that it had unfulfilled orders for 34 planes from Russian carriers Utair (UT) and Volga-Dnepr (VI), as well as seven jets from Ukrainian carrier SkyUp Airlines (PQ). Aircraft ordered by leasing businesses but ultimately intended for a Russian airline were also removed from the backlog, according to a company spokesman.

According to Boeing, the majority of the orders in question are for Russian and Ukrainian airlines. The orders were largely for the company's best-selling 737 MAX series of jets, but they also included more than a dozen 777 and 787 widebody models.

Boeing March Stats

Regarding its monthly orders and delivery figures, the airframer delivered 41 planes to customers in March. 34 of its cash cow 737 MAX single-aisle planes, two 767 freighters for FedEx (FX), and a 777 freighter for China Airlines (CI) were among the monthly deliveries.

The 41 deliveries in March, nearly double the 22 in February and up from 29 a year ago, represent rising travel and pandemic-related freight demand. According to Boeing, 95 planes have been delivered so far this year.

However, Boeing's 787 Dreamliner deliveries are on hold as the company conducts inspections and repairs on the twin-aisle jetliners that have been grounded for more than a year due to production issues.

Boeing received orders for 53 planes in March, while clients canceled orders for 15 planes. Boeing had 38 orders after cancellations and model swaps, according to the company. The company's orders increased to 167 from 114 in the first three months of the year, according to the company. After accounting for incidents where customers canceled purchases or switched models, Boeing reported a total of 145 orders, up from 107 previously.

Net orders for the quarter year to date fell to 76 from 179 after adjustments for transactions deemed unlikely to result in real delivery, according to Boeing. Boeing's official order backlog has decreased to 4,231 from 4,375.

According to CNBC.com, 15 Boeing aircraft orders were canceled in March, including one 737 MAX for lessor Aviation Capital Group, 11 737 MAX for an undisclosed customer, and one 787-9 Dreamliner each for Air China (CA) and leasing business Avolon or its CIT affiliate.

Featured image: Aeroflot VP-BPG Boeing 777-3M0(ER). Photo: Kochan Kleps/Airways