Boeing (BA) - Get Report put a bow on its dismal 2019, reporting its final sales numbers for the year and showing that the plane maker delivered less than half the number of planes this year as it did in 2018.
The company delivered 380 commercial planes in 2019, including 79 in the fourth quarter, after delivering 806 planes a year earlier.
The Chicago-based jet maker reported 87 order cancellations in 2019 after losing another three orders in December. A Boeing spokesperson told CNBC that it has been at least 30 years since the company reported a decline in overall orders in a calendar year.
The public relations fallout following two fatal 737 MAX crashes and the subsequent grounding of the aircraft is responsible for the drag on the company’s business.
Boeing is facing a $5.4 million penalty for installing faulty parts on 178 of its 737 MAX aircraft, according to the Federal Aviation Administration.
The agency charges that “Boeing failed to adequately oversee its suppliers to ensure they complied with the company’s quality assurance system,” according to a press release announcing the proposed penalty. Last month, the FAA proposed a $3.9 million penalty for Boeing for installing the same kind of faulty parts on 133 of its 737 NG airplanes.
Meanwhile, Airbus (EADSY) , Boeing’s European rival, delivered a record 863 commercial aircraft to 99 customers in 2019 and had 768 new plane orders in the year. More than 650 of those orders were for the A320 Airbus aircraft, the direct competitor to Boeing’s 737 MAX.
Separately, American Airlines (AAL) - Get Report announced that it will extend cancellations of Boeing 737 MAX flights through June 3, after announcing in December that the grounding would only hold through April 6.