Please ensure Javascript is enabled for purposes of website accessibility

Boeing Reportedly Finds Success Moving Inventory in Hot Travel Market

By Lou Whiteman - Jun 11, 2021 at 12:32PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The number of planes it has in storage without a buyer has fallen significantly.

A quicker-than-expected recovery in air traffic is helping to solve a thorny problem for Boeing (BA 1.26%), allowing the aerospace giant to clear out much of its inventory of planes that were manufactured without a buyer.

A one-two punch of the Boeing 737 MAX being grounded in March 2019 following a pair of accidents and then the pandemic, which caused airlines to scale back flying, left Boeing with a glut of inventory. 

A Boeing 737 MAX in flight.

Image source: Boeing.

But travel demand has rebounded quickly in 2021 thanks to vaccines, and airlines are looking for additional capacity. Boeing today has about 10 stored MAX aircraft in search of buyers, according to The Wall Street Journal, down from about 100 last July.

U.S. carriers including United Airlines Holdings and Alaska Air Group are among the buyers of the planes, according to the report.

The sales are good news for Boeing, which bled through $20 billion in 2020 in large part because of a lack of sales. Moving the excess inventory is also a vital prerequisite to Boeing eventually raising 737 MAX production, which should help make the plane program more profitable.

But Boeing still faces a number of obstacles. Regulators have placed its jets under heavy scrutiny since the 737 MAX debacle, with both 737 MAX and 787 Dreamliner production stalled this year at times while potential issues were worked out. Boeing is also still awaiting clearance to resume deliveries of the 737 MAX in China, an important market.

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Alaska Air Group. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Boeing Company Stock Quote
The Boeing Company
$169.99 (1.26%) $2.11
United Airlines Holdings, Inc. Stock Quote
United Airlines Holdings, Inc.
$39.34 (1.73%) $0.67
Alaska Air Group, Inc. Stock Quote
Alaska Air Group, Inc.
$47.34 (2.40%) $1.11

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.