Boeing Gets Flurry of Orders at International Airshow — 2nd Update

By Don Nico Forbes

Boeing received orders for up to 70 airplanes at the Farnborough International Airshow, marking a much-needed show of confidence in the embattled plane maker.

The deals from Korean Air and Japan Airlines come as Boeing grapples with production slowdowns and regulatory scrutiny in the wake of January's near catastrophe on an Alaska Airlines flight. The production cut is causing the company to burn through billions of dollars in cash each quarter.

Currently, about 200 fully or mostly finished airplanes are parked in airfields, outside plants or other locations, awaiting parts such as interiors or engines.

This week, plane makers are gathering at Farnborough, one of the world's largest aviation trade fairs, where they tend to highlight their latest products and technological advances, while also trumpeting deals for new passenger, cargo and military aircraft.

On Monday, two Asia-based airlines announced separate deals for Boeing airplanes.

South Korea's flagship carrier, Korean Air, said it placed an order for up to 50 Boeing widebody airplanes for an undisclosed price. The order included 20 Boeing 777-9s and 20 Boeing 787-10s, with options for 10 more of the largest 787 Dreamliner variant.

Japan Airlines, meanwhile, said it purchased up to 20 Boeing 787 Dreamliners, including 10 Boeing 787-9s with options for 10 more.

Additional terms of the deals were not disclosed.

Boeing planned a smaller-than-usual presence at Farnborough, citing the need to focus on safety and quality improvements and meeting deliveries over new orders.

Through June of this year, Boeing has delivered 175 planes, compared with 266 through the first half of 2023. The company is scheduled to report second-quarter earnings on July 31.

Ahead of the event, Boeing said in its annual industry report that it projects a 3% increase in airplane deliveries across the industry over the next 20 years, with carriers requiring nearly 44,000 new commercial airplanes by 2043. The projection comes as air travel demand has surpassed pre-pandemic levels and continues to outpace overall economic growth, the company said.

Write to Don Nico Forbes at don.forbes@wsj.com

(END) Dow Jones Newswires

July 22, 2024 12:12 ET (16:12 GMT)

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