Boeing 737 Max cancellations pile up during production halt

US plane maker posted 150 Max cancellations in March amid the coronavirus pandemic

American Airlines passenger plane (L) parked due to flight reductions made to slow the spread of coronavirus disease (COVID-19), at Tulsa International Airport in Tulsa, Oklahoma, U.S. March 23, 2020.Show more

Boeing on Tuesday reported another 75 cancellations for its 737 Max jetliner in March, as the coronavirus crisis worsened disruptions from the grounding of its best-selling jet.

The US plane maker posted a total of 150 Max cancellations in March, including 75 previously reported from Irish leasing company Avolon.

New cancellations from buyers included 34 of 135 aircraft ordered by Brazil's Gol.

Gol confirmed the cancellations and said it reached agreement with Boeing on "cash compensation and changes to future orders and associated payment schedules".

"Gol remains fully committed to the 737 Max as the core of its fleet and this agreement further enhances our successful long-term partnership with Boeing," Gol chief executive Paulo Kakinoff said.

Gol now has 95 remaining firm orders for 737 Max aircraft.

The cancellations come as Boeing tries to untangle delivery commitments after halting output of the Max in January after delays in returning it to service.

Boeing shares closed down 4.3 per cent to $141, down $6.33.

Facing a 13-month freeze on deliveries of the Max and disruption to larger planes due to the coronavirus epidemic, Boeing said it handed over 50 planes in the first quarter, barely a third of the 149 from a year earlier.

That was the lowest since 1984 for the first quarter.

The company posted orders in March for 12 787 Dreamliners, a 767 freighter and 18 pre-Max versions of the 737 for the P-8 maritime patrol programme.

For the first quarter, it posted 49 new orders, or a negative total of 147 after cancellations.

After further accounting adjustments representing jets ordered in previous years but now unlikely to be delivered, Boeing's adjusted net orders sank to a negative 307 airplanes.

The pandemic has forced Boeing and European rival Airbus to cut production in the face of plunging demand, cash problems at airlines and logistical difficulties in delivering aircraft.

Boeing remains in talks with regulators seeking approval to return the plane to service.

Last week, it said it was addressing two new software issues with the Max flight control computer.

Major US airlines, suffering an unprecedented downturn in demand due to the coronavirus, on Wednesday said they agreed in principle on the terms of $25 billion (Dh91.83bn) US government payroll aid.