In the middle of the Pacific, in Hawaii, two brand new Boeings took off for Seattle, where they had just finished assembly a few weeks earlier. A return precipitated by Beijing's decision to refuse to allow Chinese airlines to accept orders from Boeing, in response to the increase in customs fees. 125% tariff on Chinese products imported into the United States by the Trump administration.
As Boeing published its first-quarter results yesterday, Wednesday, April 23, its new CEO Kelly Ortberg declared that he was not concerned that this embargo on its aircraft in China would have an impact on its economic future. However, in total, the aircraft manufacturer's order book includes 50 aircraft destined for China in the near future, and the boss acknowledged that he was "actively evaluating" options to divert these aircraft to other buyers. It was justified by the long waiting time for airlines before receiving their new aircraft.
“It's an unfortunate situation, but we have many customers who want deliveries in the short term, so we plan to redirect supply towards this stable demand” declared Kelly Ortberg, before adding, pointing the finger at Beijing and Chinese airlines: “We are not going to continue building planes for customers who will not take them”.
“Boeing is a major American exporter”
For its financial director, Brian West, the activity Boeing would face "additional pressures" if other countries, such as China, also began to retaliate. He warned that with 70% of its 2025 order book geared toward international customers, "given our position as a significant U.S. exporter, free trade policy in the commercial aerospace sector remains very important to us." The day before Boeing's results were released, the U.S. Treasury Secretary announced that he expected a "de-escalation" in this trade war, as the situation was so untenable.
Without this – and even if only 10% of its order book concerns China – the embargo between the two countries could make Boeing's first quarter an isolated case. The aircraft manufacturer recorded a net loss of $31 million, far from the $355 million a year earlier. The result of a turnover up 18% to $19.5 billion and 130 airliners delivered during the period, up 60% year over year.
Source: Fortune
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