Boeing’s 6-month tally: 1 net order

Published 11:27 pm Thursday, July 2, 2009

EVERETT — Six months into 2009, the Boeing Co. is off to its worst start for jet orders in years, while slightly increasing its aircraft deliveries over last year.

Boeing has only one net aircraft order for the first half of 2009, according to the company’s Web site, which was updated Thursday. As airlines struggle to attract passengers and cargo, they’ve dealt Boeing nearly as many cancellations, 84, as they have orders, 85.

Demand for Boeing jets has dropped sharply compared to last year, when Boeing had won 452 gross orders six months into the year. But production of Boeing aircraft has continued at a steady pace. The company has handed over 246 jets though June 30, up five aircraft deliveries from the same point in 2008.

Boeing has said it will slow production of its Everett-built 777 during mid-2010, but it believes it will not need to adjust the production pace of its single-aisle 737. The company is expected to report its second quarter earnings July 22 and could give an update on the schedule for its delayed 787 then.

Boeing’s rival jet maker, Airbus, hasn’t released its June order total yet. At the end of May, the European company listed 11 net orders. But Airbus won 58 firm aircraft orders at the Paris Air Show in mid-June.

The last time that Boeing had fewer gross orders six months into a year was in 2004, when the company had 82 orders. But the number of net orders at the halfway point in 2004 outweighed the single net order received so far this year. Fueled then by the success of its newly launched 787, Boeing went on to log 272 net orders in 2004.

This year, the 787 has led the way in order cancellations. The delayed Dreamliner has lost 73 orders through June 30, including a cancellation of 15 787s announced last week by Qantas. Halfway through 2009, Boeing has just 12 more orders for its 787, 850 requests, than it did at the end of June 2008.

However, Boeing 787 launch customer All Nippon Airways hasn’t been discouraged too much by the Dreamliner’s delays. The Japanese carrier increased its 787 order by five this week.

Prior to Boeing’s low order point in 2004, the Chicago-based aerospace company had gone a decade of having 100 or more gross orders at mid-year. In 1994, Boeing picked up 51 gross orders by the end of June. Even though Boeing’s new 777 took flight that spring, the company didn’t win a single 777 order that year.

And it ended 1994 with just 125 orders.

Boeing’s stock has taken a beating, especially since the company announced another delay to the first flight of its Dreamliner last week. The company’s shares have dropped more than 13.5 percent since the delay announcement, closing Thursday at $40.83, down 1.40.