Boeing Just Got Another Huge 737 MAX Order
Boeing (NYSE: BA) entered 2021 with a depleted order backlog for its troubled 737 MAX, after the long 737 MAX grounding and the COVID-19 pandemic drove a surge in order cancellations while causing order activity to grind to a halt. However, the aircraft manufacturing giant has been working hard to rebuild that backlog over the past six months.
On Tuesday, Boeing took another big step forward, winning a massive order from United Airlines (NASDAQ: UAL). That said, Boeing's growing reliance on a few large orders from big airlines with a lot of bargaining power could weigh on the plane maker's profitability in the years ahead.
During the depths of the pandemic, United Airlines deferred most of its aircraft orders to 2023 and beyond. Demand has recovered faster than expected, though, as COVID-19 vaccines have become readily available in the U.S. over the past few months.
Source Fool.com
