Boeing reportedly managed to move inventory into hot travel market

A faster-than-expected resumption of air traffic is helping to solve a thorny problem for Boeing (NYSE:BA), allowing the aerospace giant to liquidate much of its inventory of planes that have been manufactured without a buyer.

A grounded Boeing 737 MAX punch in March 2019 following two crashes and then the pandemic, which prompted airlines to cut flights, left Boeing with a glut of inventory.

Image source: Boeing.

But travel demand has rebounded rapidly in 2021 thanks to vaccines, and airlines are looking for additional capacity. Boeing today has about 10 MAX planes in storage looking for buyers, according to The Wall Street Journal, compared to around 100 last July.

US carriers, including United Airlines Holdings and Alaska Air Group are among the buyers of the planes, according to the report.

The sales are good news for Boeing, which lost $20 billion in 2020 largely due to a lack of sales. Moving excess inventory is also a key prerequisite for Boeing to eventually ramp up 737 MAX production, which should help make the aircraft program more profitable.

But Boeing still faces a number of obstacles. Regulators have placed its jets under scrutiny since the 737 MAX debacle, with production of the 737 MAX and 787 Dreamliner sometimes stalled this year as potential issues were resolved. Boeing is also still awaiting approval to resume deliveries of the 737 MAX to China, an important market.

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