Transport

Boeing cuts order tally by 100 aircraft due to deals at risk from Ukraine war

Plane-maker had 76 net aircraft orders at the end of March, down from 179 a month earlier

Boeing 737 Max aircraft parked at the company’s production facility in Renton, Washington. Photograph: David Ryder/Getty Images

Tue Apr 12 2022 - 17:19

Boeing clipped its order tally by about 100 planes last month to account for purchases at risk of collapsing due to Russia’s invasion of Ukraine.

The plane-maker had 76 net aircraft orders at the end of March, down from 179 a month earlier, according to the company’s website Tuesday.

On a gross basis, sales rose to 167 jets for the first quarter buoyed by the 737 Max, after the plane-maker booked orders for 53 aircraft in March. But on a net basis, Boeing trailed rival Airbus in sales and deliveries as the US company outlined its financial exposure to the war.

Unlike its European counterpart, the Chicago-based manufacturer is subject to a US accounting rule requiring Boeing to remove from its backlog orders that are at risk because of customer finances, geopolitics, sanctions and other factors – although the underlying contracts remain in place. The planes are added back to net sales totals once the risks subside.

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Boeing dropped 152 aircraft from its backlog due to the accounting requirement in March, two-thirds of which were related to the war in Ukraine, a spokesman said. The tally includes jets ordered by lessors for customers in the region.

The company logged a negative net adjustment of 141 aircraft for the quarter. The hit was the largest in months for Boeing, sales for which had been boosted by the accounting rule as airlines started to recover from the coronavirus pandemic.

Boeing delivered 41 aircraft in March, including 34 of the 737 Max as the plane-maker stepped up production of its top-selling jetliner. The manufacturer handed over 95 jets in the first quarter, up from 77 a year earlier.

Airbus had 140 net deliveries in the quarter. The Toulouse, France-based plane-maker landed 83 net orders for the quarter. – Bloomberg

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