Thu. Jan 27th, 2022

Boeing’s orders for jets fell sharply last year, even though it was far behind rival Airbus in terms of deliveries of new aircraft.

Shares in the U.S. aircraft maker rose 3 percent by Tuesday afternoon in New York after hitting 909 gross orders in 2021 – more than double the score of the previous two years combined. Net orders, after cancellations and conversions were taken into account, stood at 535.

Rival Airbus reported 771 gross orders and 507 net on Monday.

About two-thirds of the planes sold by Boeing last year were variants of the 737 Max, which ground regulators for nearly two years after two fatal crashes.

The company also sold 84 cargo ships. This reflects the huge demand for air freight during the pandemic, as consumers moved online to order goods. Cargo traffic has also increased because passenger planes carrying typically 50 percent of the airlines were grounded during the crisis.

In terms of deliveries, Boeing handed over 340 aircraft to airlines in 2021. Although more than twice the number of 157 in 2020, it was well below its record of 806 jets in 2018 and lower than that of Airbus, which delivered 611 jets has. last year.

The Airbus deliveries were driven by demand for his popular A320 single-jet family, which helped him to its crown as the world’s largest aircraft manufacturer for the third year in a row.

Despite the refusal of orders, Boeing faces a difficult challenge to repair the damage caused by the ground of the Max, as well as the pandemic impact.

The company is working to increase production of the Max after halting production in 2020. It also grapples with production challenges on the two-speed 787 Dreamliner.

Bank of America analyst Ron Epstein said Boeing has been chasing Airbus in narrow-body sales since the 737 Max was founded. Some industry insiders believe the Chicago headquarters company may continue to lose market share to its arch-rival.

“A lot of it has to do with Boeing not having a plane to compete with the A321,” Epstein added.

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