Boeing Co. (NYSE:BA) reported a total of 150 cancellations in March alone for its 737 Max aircraft, according to CNBC. The plane maker did get 31 orders for wide-body jets and military aircraft for the month, bringing the total net cancellations to 131. The Max cancellations in March are a sharp increase to the 46 reported for the month of February.
For the first quarter, net cancellations for all orders totaled 307 planes, according to the report. Last week, the company paused production at its 787 Dreamliner plant in South Carolina, after already having shut down its manufacturing in Washington. Boeing has not set a date for both facilities to resume operations.
The passenger airline industry has been hit hard by the impacts from the COVID-19 pandemic, and airlines are trying to conserve cash. The International Air Transport Association (IATA), trade association for the world's airlines, has said in its most recent analysis that airlines could lose $61 billion of cash reserves in the second quarter, from a 71% drop in demand. This scenario would see full year passenger revenues drop by $252 billion, from 2019 levels. It would correspond to a 38% demand drop, with second quarter being the most severe.
Boeing said it is working with its customers during these difficult times for the industry. In a statement, it said "Boeing continues to adjust its order book to adapt to lower-than-planned 737 MAX production in the near term," according to the CNBC report.