Boeing says its 777X orders dropped by a third after delivery delays

Boeing has slashed its 777X aircraft order book by more than a third after the aerospace giant announced further delays in the debut of its new aircraft, according to a new filings.

The Chicago-based manufacturer said last week it didn’t expect the 777X to enter service until late 2023, more than two years later than expected. Boeing said its order total for 777X at the end of 2020 stood at 191 from 309 a year earlier, according to Monday’s filing.

Boeing regularly removes planes from its order book due to an accounting rule that dictates how orders at risk of cancellation are recorded. Aircraft purchase agreements generally make it easier for customers to cancel orders in the event of aircraft delays.

Boeing took a charge of $ 6.5 billion in the fourth quarter for delays on the 777X.

The company removed hundreds of 737 Max orders from its order backlog under similar accounting rules and outright cancellations. These narrow-body planes, Boeing’s best-selling airliner, are once again carrying passengers after a two-year grounding following two fatal accidents.

Last week, Boeing said an additional regulatory review on larger 777X planes following Max’s crashes as well as weaker customer appetite for new planes amid the pandemic would have helped delivery delays for widebody airliners.