Cancellations Spoil Boeing's March Order Surge
Two years ago, the 737 MAX grounding and weakening demand for wide-body jets caused order activity to grind to a halt for Boeing's (NYSE: BA) commercial jet business. As dismal as 2019 was for the jet maker, 2020 was even worse, as the COVID-19 pandemic crushed aircraft demand.
This led to a slew of order cancellations, particularly for the 737 MAX. By the end of 2020, Boeing had a firm backlog of 3,282 737-family jets -- down 30% from 4,708 two years earlier.
The recertification of the Boeing 737 MAX finally sparked a rebound in order activity starting late last year. The momentum in new orders continued into early 2021 and accelerated in March. However, even as Boeing booked several big orders last month, order cancellations continued at an elevated rate, limiting the company's ability to expand its backlog.
Source Fool.com
