Large Boeing 737 MAX customers signal caution on orders amid COVID-19

Large Boeing 737 MAX customers signal caution on orders amid COVID-19

Reuters  | Nov 19, 2020 20:45

Large Boeing 737 MAX customers signal caution on orders amid COVID-19

By Conor Humphries and Tracy Rucinski

DUBLIN/CHICAGO (Reuters) - A day after Boeing Co (N:BA) received approval for its 737 MAX to fly again following a 20-month grounding, its two largest U.S. and European customers signaled caution on their order books as they monitor demand in the midst of the coronavirus pandemic.

U.S. based Southwest Airlines (N:LUV), Boeing's largest customer worldwide, said this week it would just take new MAX jets to replace jets it's retiring rather than grow its fleet, and on Thursday raised the prospect of scaling back its fleet due to the pandemic.

"If demand is going to be persistently depressed, we can retire and not need to take airplanes as replacements," Southwest Chief Executive Gary Kelly told journalists.

When the 737 MAX was grounded globally in March 2019 following two fatal crashes, airlines canceled flights because they lacked enough airplanes to meet strong travel demand.

Now many have parked jets or even gone out of business in the pandemic, creating challenges for Boeing as it tries to find homes for 737 MAX jets that are built but now lack buyers.

A senior executive of Boeing's largest European customer, low-cost carrier Ryanair (I:RYA), said on Thursday that it is not currently looking at additional orders for the jet, but may buy more if prices fall in the wake of COVID-19.

Executives at the airline have said repeatedly over the past year that the airline was discussing possible additional orders amid ongoing talks with Boeing on compensation for delays to its current order for 210 MAX jets.

"Over time one can see that there will be a way that aircraft are going to be cheaper ... and we will capitalize on that at some stage," Ryanair DAC Chief Executive Eddie Wilson said at the Skift Aviation Forum.

"But at the moment it's just the ... existing order that we have," he said.

Ryanair has said it expects to take delivery of its first 30 MAX jets by next summer. The United States lifted a 20-month-old flight ban on the MAX on Wednesday and European regulators are expected to follow suit.

© Reuters. FILE PHOTO: A Ryanair Boeing 737 airplane passes a Stop sign as it lands at Barcelona-El Prat airport

Norwegian Air Shuttle (OL:NORR), another major MAX customer, this week sought bankruptcy protection in Ireland.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.