Boeing on Tuesday reported another 75 cancellations for its 737 Max jetliner in March, as the coronavirus crisis worsened disruptions from the grounding of its best-selling jet.
The US plane maker posted a total of 150 Max cancellations in March, including 75 previously reported from Irish leasing company Avolon.
New cancellations from buyers included 34 of 135 aircraft ordered by Brazil's Gol.
Gol confirmed the cancellations and said it reached agreement with Boeing on "cash compensation and changes to future orders and associated payment schedules".
"Gol remains fully committed to the 737 Max as the core of its fleet and this agreement further enhances our successful long-term partnership with Boeing," Gol chief executive Paulo Kakinoff said.
Gol now has 95 remaining firm orders for 737 Max aircraft.
The cancellations come as Boeing tries to untangle delivery commitments after halting output of the Max in January after delays in returning it to service.
Boeing shares closed down 4.3 per cent to $141, down $6.33.
Facing a 13-month freeze on deliveries of the Max and disruption to larger planes due to the coronavirus epidemic, Boeing said it handed over 50 planes in the first quarter, barely a third of the 149 from a year earlier.
That was the lowest since 1984 for the first quarter.
The company posted orders in March for 12 787 Dreamliners, a 767 freighter and 18 pre-Max versions of the 737 for the P-8 maritime patrol programme.
For the first quarter, it posted 49 new orders, or a negative total of 147 after cancellations.
After further accounting adjustments representing jets ordered in previous years but now unlikely to be delivered, Boeing's adjusted net orders sank to a negative 307 airplanes.
The pandemic has forced Boeing and European rival Airbus to cut production in the face of plunging demand, cash problems at airlines and logistical difficulties in delivering aircraft.
Boeing remains in talks with regulators seeking approval to return the plane to service.
Last week, it said it was addressing two new software issues with the Max flight control computer.
Major US airlines, suffering an unprecedented downturn in demand due to the coronavirus, on Wednesday said they agreed in principle on the terms of $25 billion (Dh91.83bn) US government payroll aid.
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Ferrari 12Cilindri specs
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Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
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On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
How to invest in gold
Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.
A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).
Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.
Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”
Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”
Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”
By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.
You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.
You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.
Mohammed bin Zayed Majlis
