— This is the script of CNBC's news report for China's CCTV on January 15, 2020, Wednesday.
After a 10-month grounding on the 737 MAX, expectations for Boeing's performance this year were low, but the new released numbers were still jaw-dropping. Because cancellations outstripped new orders, Boeing's commercial aircraft net order book for 2019 was negative, the first time this has happened to the company in recent decades.
Boeing's total orders for 2019 fell 77 per cent to 246, or just 54 after cancellations or replacements. And after accounting adjustments based on industry standards, which exclude orders placed last year but not delivered that year, Boeing's actual net order book for 2019 is minus 87 for commercial jets. A Boeing spokesman said he was not sure exactly when the order was lost, but that it had not happened in the past 30 years. In terms of deliveries, Boeing delivered a total of 380 commercial aircraft in 2019, the lowest in more than a decade, down 53% from a year earlier. Boeing's performance was even bleaker compared with that of rival Airbus, which delivered a total of 863 planes in 2019, its highest on record.
The latest figures also mean the world's biggest commercial aircraft maker has officially shifted from Boeing to Airbus. The prolonged grounding of Boeing's 737 MAX has hit not only its own performance but also the major airlines
Boeing has also signed compensation agreements with some airlines because of that, but one airline reported strong results on Tuesday: delta, the only major U.S. carrier not using the 737 MAX.
Ed Bastian
CEO of Delta Air Lines
as you know, we don't fly the 737 Max. So, we're not directly impacted by that issue. We've been monitoring it. We've been in touch with Boeing around it.
Some of the affected airlines continued to come under pressure on the same day that American airlines announced a further delay in the 737 MAX until June.
We know that Boeing still has a backlog of about 5,400 commercial aircraft in the face of continued low new orders, making the 737 MAX go-around a top priority for the company in 2020. When will Boeing recover its performance? It's all up to FAA actually. At Boeing, the onus is on David Calhoun, Boeing's new chief executive, who took over this week.
Ed Bastian
CEO of Delta Air Lines
I have a tremendous amount of respect for Dave.
He knows the company well. He'll be able to get in and have an impact. And I think you'll see his name continue to elevate at Boeing in terms of making the type of changes that are necessary.
It's been widely reported that there's a cultural issue at Boeing for some time now. And Dave will clean it up.
So how will Calhoun reform Boeing, and how long will it take Boeing to recover? We will keep an eye on this issue.