Boeing reported total new orders for aircraft at 63 for November, which was the best monthly total for 2019 to-date. It brought gross new orders up to 243 for the first 11 months of this year. However, cancellations of 187 for the year-to-date brought net orders down to a meager 56 for 2019 so far. Boeing hasn’t seen a year this weak since the depths of the Great Recession.
Most of the orders in November can be attributed to the Dubai Airshow (November 17-21). There may be a few deals not yet closed that could appear on the books for December. Nonetheless, it is unlikely that December will be able to bring any substantive change to the tone for a year that has faced the challenges associated with restoring Boeing’s reputation after the 737 MAX air disasters on top of sluggish global growth.
There were no orders from North American buyers in November, 42 from foreign firms, and 21 for unidentified buyers. The total of 63 was a nice bounce upward from the 10 orders in October. The increase should provide support to the transportation component in the report for new orders for durable goods in November when those numbers are released at 8:30 ET on Tuesday, December 24.
Aircraft orders are not expected to improve in the near term. The next window of opportunity for a boost in sales is the Singapore Airshow (February 11-16). This is not one of the larger air expos but it is one that is more accessible to Asian markets.
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