Boeing Finally Admits That Aircraft Demand Is Basically Zero
Six months ago -- before the COVID-19 pandemic -- Boeing (NYSE: BA) announced that it would suspend 737 MAX production in January. Its top-selling plane had been grounded since March 2019, following a pair of fatal accidents. Due to Boeing's decision to continue building the 737 MAX while waiting for regulators to recertify the model, the company had built up an inventory of about 400 undelivered 737 MAX jets and was running out of places to store them.
Since then, aircraft demand has plummeted, as the COVID-19 pandemic caused global air travel to dry up. Nevertheless, Boeing restarted 737 MAX production in late May, with plans to ramp up output gradually over the remainder of the year.
Given that few (if any) airlines want new planes right now, this decision didn't make much sense. It didn't take long for Boeing to come to its senses, though. Recently, the company told a major 737 MAX supplier to virtually halt production again.
Source Fool.com
