Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios Pro Rata

Dive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Austin news?

Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Atlanta news?

Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Philadelphia news?

Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Chicago news?

Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top DC news?

Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Aïda Amer/Axios

The grounding of Boeing’s 737 MAX was the worst crisis in the plane-maker’s century-long history. At least until the global pandemic hit.

Why it matters: Wall Street expects it will be cleared to fly again before year-end. Orders for what was once the company’s biggest moneymaker were expected to rebound after the ungrounding, but now the unprecedented slump in travel will dash airlines’ appetite for the MAX and any other new planes, analysts say — putting more pressure on the hard-hit company.

Driving the news: The two 737 MAX crashes in Indonesia and Ethiopia that killed 346 people — and led to its worldwide grounding in March of last year — were front and center this week.

  • Congress released a 238-page report outlining the “horrific culmination” of events that caused the crashes — laying blame on Boeing and its key regulator, the FAA.
  • The report isn’t expected to delay the plane’s return to service, as Fitch Ratings wrote in a report out this week.
  • Boeing has conducted test flights in recent months to demonstrate the beleaguered jet is safe to fly. The FAA's OK that the plane can return to the skies would likely prompt other countries to follow suit.

The state of play: The company has over 450 737 MAX jets in the hopper to be delivered, with a total of 4,117 planes ordered by airlines as of late last month, according to Fitch.

  • But order cancellations are piling up. The pandemic has introduced a new reality — scrapped orders have consistently outpaced new orders.
  • While Boeing is expecting some windfall when they're cleared to restart deliveries, as customers pay a healthy chunk when they place the order, the majority of payment comes upon delivery.
  • And even if customers don't outright cancel prior 737 MAX orders, airlines will "negotiate really hard to defer those deliveries" — pushing off payment to Boeing, says Cai von Rumohr, a Cowen analyst who's followed the industry for 50 years.

The big picture: Airlines are facing such a severe drop-off in travel demand that previous needs for additional planes have disappeared. Even their current inventory isn’t fully utilized.

  • Air New Zealand said this week it would store its entire Boeing 777 fleet until September of next year because of the pandemic. Delta has announced a similar measure.
  • That’s bad news for Boeing, “which makes a long list of spare and replacement parts and components and sells them to airlines to keep the big airplanes in the air,” as the Puget Sound Business Journal reports.

Between the lines: Some deliveries of the 787 Dreamliner — its other popular plane — have slowed after the company disclosed manufacturing issues and was forced to conduct inspections, the New York Times reported earlier this month.

  • Even with those troubles aside, demand for that plane is expected to wane.
  • "787 customers don't need to have more 787 planes. International travel is still down by 90%," von Rumohr tells Axios.

The bottom line: When the 737 MAX was grounded, there were questions about whether customers would ever feel safe flying on the plane again. The question has morphed into: How long will it be before customers fly again, period.

  • Boeing will weather the crisis. It withdrew its plea for federal funds, but loaded up on debt and raised billions in the public market after the Federal Reserve stepped in to shore up credit markets early in the crisis.

Go deeper

Jul 10, 2020 - Economy & Business

Airline recovery falters before it even gets off the ground

Illustration: Eniola Odetunde/Axios

Any hope for a rebound in air travel this year has vanished, with coronavirus cases surging in much of the U.S. and some states imposing quarantines to keep visitors away.

Why it matters: The airline industry is already suffering the worst crisis in its history. The soaring infection rates mean planes will be grounded even longer, putting tens of thousands of people out of work in the coming months.

Bryan Walsh, author of Future
Updated 5 hours ago - Technology

A dark view of the future of autonomous weapons

A still from the video "If Human: Kill ( )." Image: Future of Life Institute

A new short film warns of the coming risks posed by the development and proliferation of lethal autonomous weapons.

Why it matters: Drones with the ability to autonomously target and kill without the assistance of a human operator are reportedly already being used on battlefields, and time is running out to craft a global ban of what could be a destabilizing and terrifying new class of weapon.

Updated 5 hours ago - Politics & Policy

Omicron dashboard

Illustration: Shoshana Gordon/Axios

  1. Health: Coronavirus variant surveillance varies widely by state — Omicron cases confirmed in 5 U.S. states America probably won't lead the effort to understand Omicron.
  2. Vaccines: Omicron adds urgency to vaccinating world — Omicron fuels the case for COVID boosters — Moderna loses patent battles tied to COVID vaccine — Pfizer could have vaccine data for children under five by end of 2021, CEO says.
  3. Politics: Nevada to impose insurance surcharge on unvaccinated state workers — New Jersey GOP lawmakers defy statehouse COVID policy — Oklahoma sues Biden administration over Pentagon vaccine mandate — Omicron travel bans are sign of what's to come.
  4. World: WHO: Delta health measures help fight Omicron — COVID cases surge in South Africa in sign Omicron wave is coming — Germany approves new restrictions for unvaccinated people.
  5. Variant tracker: Where different strains are spreading.