Boeing, a major airplane maker, is looking for new buyers after China has stopped taking deliveries of its planes due to a trade dispute with the United States. This situation could affect about 50 airplanes that were supposed to reach China this year. Boeing’s CEO, Kelly Ortberg, shared this information in an interview after the company reported better-than-expected earnings.
Boeing is actively talking to its customers in China and considering new options to sell the airplanes that have already been made or are being built. This issue highlights the challenges Boeing faces, especially as it’s the largest U.S. exporter of manufactured goods. Earlier this year, President Trump imposed tariffs on many goods, which led China to respond with their own tariffs, making Boeing planes expensive for Chinese airlines.
Ortberg expressed concern that if more countries follow China’s lead and impose tariffs, Boeing’s recovery plans might hit obstacles. He emphasized to the U.S. government the essential role aerospace exports play in the American economy.
So far, Boeing believes it can handle the impact of the situation, with potential losses estimated at around $500 million due to costs and up to $1 billion in revenue from the jets meant for China.
Despite the issues, the demand for new airplanes remains strong, and Boeing can redirect some of the rejected aircraft to airlines that need them. For example, Air India has already received several jets that were originally built for Chinese airlines and is ready to accept more.
An analyst has noted that if China cancels its orders, Boeing shouldn’t have too much trouble selling the planes to other airlines. While Boeing’s recent earnings report was positive, the trade dispute could also hurt smaller suppliers who are already dealing with increased costs.
Boeing is planning to increase production of its 737 Max and 787 models, aiming to reach a monthly production goal of around 38 jets per month, and eventually, even more as the production conditions improve. The company is focused on getting back to making a profit as soon as possible, with plans to generate positive cash flow in the latter part of the year.
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