Boeing reported 18 new orders for February, a positive after no new orders in January. However, the year is off to a slow start with gross orders of 18 being more than offset by cancellations of 46 for a net of -28 in the first two months of 2020.
There were 4 new orders from North American buyers, 4 from foreign buyers, and 10 from unidentified buyers — typically military. All were for 787 aircraft except for 1 767 model. Unsurprisingly, there were no orders for 737 and these comprise the bulk of order cancellations (-41 for year-to-date).
Boeing likely got some business at the Singapore Airshow that ran February 11-16. The next major air show on the calendar is Berlin on May 13-17. If the spread of the coronavirus is contained by May, it could be Boeing’s next good opportunity to try to improve sales. If not, it may not be until the Farnborough Airshow on July 20-26 that Boeing will have a chance to boost sales.
Given the lack of booking of commercial aircraft sales in recent months, the increase in February is likely to give a boost to the transportation component of the advance report on durable goods sales when the February numbers are reported at 8:30 ET on Wednesday, March 25. Some will go to the civilian aircraft subcomponent, but defense aircraft should make more of a noise in the data.
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