07.05.2020 Boeing Daily Analysis

07.05.2020 Boeing Daily Analysis

Boeing today is trading $121.86 it went down with $3.54 mainly because Boeing and other plane makers have asked Air France to delay taking some wide-body jets after a manufacturing slowdown caused by the coronavirus crisis. Chief Executive Ben Smith pointed out that they have A350s for the end of the year that will be pushed into next year, and then some A350s for next year that will be pushed into the year after. Boeing notified Air France that a 787 that was supposed to arrive in June will not be delivered on schedule. The delays come at a time when cash-strapped airlines are themselves requesting postponements. According to Smith, these are nice domino impacts on us and we are going to continue to negotiate to ensure we have the right mix to match our liquidity and our assumptions going forward'. The main reason why Airbus and Boeing paused production last month was to adjust to lockdowns and now they are cutting output due to low demand.