Business World

Saturday 23 September 2017

Boeing falls short but still set to be biggest producer

Boeing facilities are seen in Los Angeles, California, U.S. April 22, 2016. REUTERS/Lucy Nicholson/File Photo
Boeing facilities are seen in Los Angeles, California, U.S. April 22, 2016. REUTERS/Lucy Nicholson/File Photo

Alwyn Scott

Boeing fell 80 planes short of its goal for new orders in 2016, but probably clinched the title of world's biggest planemaker for another year.

Boeing on Friday said it delivered 748 jetliners last year and booked net orders for 668 aircraft worth about $94bn at list prices. Boeing had predicted orders would roughly match deliveries, which it forecast at between 745 and 750 planes.

Boeing's delivery total means the Chicago-based aerospace and defence company is likely to have beaten European rival Airbus on output. Airbus had forecast at least 670 deliveries in 2016, and is due to reports totals on Wednesday. Investors watch orders closely to gauge future aircraft production levels and revenue, since airlines make most of the payment when aircraft are delivered.

The final days of 2016 marked a busy time for Boeing's new sales chief Ihssane Mounir. The sales force booked 198 net new orders since December 20, including 189 orders from unidentified customers. The tally did not include any of its pending orders for Iran, the company said.

The total included 194 orders worth about $21bn at list prices for Boeing's new narrowbody 737 MAX, which is scheduled to enter service next year. It also included an order for four 787 Dreamliners from Uzbekistan Airways

Boeing had already disclosed a large part of the tally earlier in the week, when it said it booked 80 orders for its 737 MAX.

The new tally lifts Boeing's total backlog to 5,715 commercial jets, equivalent to about seven years of production. The majority are single-aisle 737 planes. Sales of its more expensive widebodies such as the 777 and 787 remain sluggish.

Reuters

Reuters

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