Boeing 777-x9
Courtesy Boeing
Boeing 777-x9
Now playing
02:45
Boeing to cut jobs in response to coronavirus crisis
Now playing
02:54
Heart Aerospace CEO: We plan to fly electric planes by 2026
BURLINGAME, CALIFORNIA - MARCH 13: A United Airlines Boeing 737 Max 9 aircraft lands at San Francisco International Airport on March 13, 2019 in Burlingame, California. The United States has followed countries around the world and has grounded all Boeing 737 Max aircraft following a crash of an Ethiopia Airlines 737 Max 8.  (Photo by Justin Sullivan/Getty Images)
Justin Sullivan/Getty Images
BURLINGAME, CALIFORNIA - MARCH 13: A United Airlines Boeing 737 Max 9 aircraft lands at San Francisco International Airport on March 13, 2019 in Burlingame, California. The United States has followed countries around the world and has grounded all Boeing 737 Max aircraft following a crash of an Ethiopia Airlines 737 Max 8. (Photo by Justin Sullivan/Getty Images)
Now playing
02:00
United bets big on travel rebound with record jet order
An American airlines airplane is seen at the Juan Santa Maria airport in Alajuela, Costa Rica, on May 28, 2021. - Costa Rica is experiencing its most critical moment since the Covid-19 pandemic breakout, in March 2020, but maintains an encouraging outlook for its economic reactivation.
Ezequiel Becerra/AFP/Getty Images
An American airlines airplane is seen at the Juan Santa Maria airport in Alajuela, Costa Rica, on May 28, 2021. - Costa Rica is experiencing its most critical moment since the Covid-19 pandemic breakout, in March 2020, but maintains an encouraging outlook for its economic reactivation.
Now playing
01:39
See why American Airlines is canceling hundreds of flights
FILE- In this Sept. 30, 2020, file photo, a Boeing 737 Max jet, piloted by Federal Aviation Administration (FAA) chief Steve Dickson, prepares to land at Boeing Field following a test flight in Seattle. Boeing says it has informed 16 of its customers that they should address a possible electrical issue in certain 737 Max aircraft before using them further. Boeing said Friday, April 9, 2021, that the recommendation was made "to allow for verification that a sufficient ground path exists for a component of the electrical power system." (AP Photo/Elaine Thompson, File)
Elaine Thompson/AP
FILE- In this Sept. 30, 2020, file photo, a Boeing 737 Max jet, piloted by Federal Aviation Administration (FAA) chief Steve Dickson, prepares to land at Boeing Field following a test flight in Seattle. Boeing says it has informed 16 of its customers that they should address a possible electrical issue in certain 737 Max aircraft before using them further. Boeing said Friday, April 9, 2021, that the recommendation was made "to allow for verification that a sufficient ground path exists for a component of the electrical power system." (AP Photo/Elaine Thompson, File)
Now playing
03:14
US and Europe suspend Airbus-Boeing dispute as they hint threat from China
FILE PHOTO: Airbus Commercial Aircraft President Guillaume Faury poses during the unveiling of an Airbus A220-300 aircraft after its landing in Colomiers near Toulouse, France, July 10, 2018. REUTERS/Regis Duvignau/File Photo
Regis Duvignau/REUTERS
FILE PHOTO: Airbus Commercial Aircraft President Guillaume Faury poses during the unveiling of an Airbus A220-300 aircraft after its landing in Colomiers near Toulouse, France, July 10, 2018. REUTERS/Regis Duvignau/File Photo
Now playing
02:44
Airbus CEO: Aviation has found a solution after a roller coaster year
Now playing
02:47
IAG CEO: It doesn't make sense not to open US to UK corridor
Now playing
00:58
This supersonic jet can travel across the pond in under 4 hours
Courtesy AirlingRatings.com
Now playing
02:45
Delta Air Lines prepares 'connected cabins' for post-pandemic flights
A Delta Airlines airplane takes off from Atlanta International Airport, Georgia on June 10, 2019. (Photo by Daniel SLIM / AFP)        (Photo credit should read DANIEL SLIM/AFP via Getty Images)
Daniel Slim/AFP/Getty Images
A Delta Airlines airplane takes off from Atlanta International Airport, Georgia on June 10, 2019. (Photo by Daniel SLIM / AFP) (Photo credit should read DANIEL SLIM/AFP via Getty Images)
Now playing
04:24
Delta CEO: Vaccinations won't be required to fly domestically
intv pleitgen lufthansa germanwings ceo complete_00044404.jpg
intv pleitgen lufthansa germanwings ceo complete_00044404.jpg
Now playing
03:45
Lufthansa CEO: Travel bookings surge as Covid restrictions fall
Now playing
01:45
IATA: We strongly condemn the actions of Belarus
UFO Navy Corbell 1
UFO Navy Corbell 1
Now playing
01:36
Newly leaked video shows a UFO disappear into the water
MARANA, ARIZONA - MAY 16: Decommissioned and suspended jetBlue commercial aircrafts are seen stored in Pinal Airpark on May 16, 2020 in Marana, Arizona.  Pinal Airpark is the largest commercial aircraft storage facility in the world, currently holding increased numbers of aircraft in response to the coronavirus COVID-19 pandemic.   (Photo by Christian Petersen/Getty Images)
Christian Petersen/Getty Images
MARANA, ARIZONA - MAY 16: Decommissioned and suspended jetBlue commercial aircrafts are seen stored in Pinal Airpark on May 16, 2020 in Marana, Arizona. Pinal Airpark is the largest commercial aircraft storage facility in the world, currently holding increased numbers of aircraft in response to the coronavirus COVID-19 pandemic. (Photo by Christian Petersen/Getty Images)
Now playing
02:06
JetBlue CEO on when tickets to London will be available
Bruce Bennett/Getty Images
Now playing
03:10
Federal investigation looks into carrier's pilot safety practices
Now playing
02:41
Delta CEO: All future employees must be vaccinated
New York CNN Business —  

Norwegian Air Shuttle canceled orders for 97 Boeing jets, the largest cancellation by a single Boeing customer since the grounding of the 737 Max 15 months ago.

But the canceled orders, announced Monday, were due to Norwegian’s financial problems, not the problems with the jet. The Max had its first test flight by FAA pilots Monday, one of the final steps it will need before it is approved to carry passengers again.

Financial problems at Norwegian Air predate the coronavirus pandemic that caused a sharp drop in air travel and trouble for airlines around the globe. It was seeking a debt restructuring in September of last year. Its shareholders approved a reorganization plan in May to convert nearly $1 billion in debt to equity, a move that allowed it to avoid bankruptcy.

Norwegian’s canceled orders represent all of its unfilled jet orders from Boeing – 92 737 Max jets and five 787 Dreamliners.

There was a time that Norwegian, one of the world’s largest discount carriers, was one of Boeing’s major customers. It was the first European airline to buy the 737 Max when it agreed in 2012 to buy 100 of the planned jet and an additional 22 of the earlier versions of the 737. At the time Boeing put the list price of that 122 plane purchase at $11.5 billion, though with an order that size there is no way that Norwegian was paying full list price.

Boeing issued a statement suggesting that it is still in discussions with Norwegian about its order.

“We are not going to comment on commercial discussions with our customers,” said the company. “Norwegian Air is a long-standing Boeing customer. As with many operators dealing with a very challenging time, we are working on a path forward.”

In addition to Norwegian, Boeing had 322 orders for planes canceled since the pandemic starting hitting air travel in February, with 313 of the orders being for the 737 Max. It has announced plans to cut 16,000 jobs and trim production rates in response to the downturn in demand, but it still had a backlog of 4,744 orders before this announcement.

Norwegian was hurt by the 737 Max grounding, and it has been more vocal than most carriers about demanding compensation from Boeing for the 18 737 Max jets in its fleet that it wasn’t allowed to fly. Although Boeing has reached compensation deals with many of its airline customers, Norwegian’s statement said it has yet to reach its own deal with Boeing.

Terms have not been disclosed, but industry experts believe most of the compensation that Boeing has agreed to pay airlines comes in the form of discounts on future purchases of aircraft, parts and services. But with these canceled orders, Norwegian has no future purchases planned from Boeing.

Norwegian said in addition to the problems caused by the grounding of the 737 Max, it has had problems with the engines on the 787 Dreamliners it already owns and operates, which it said “affected reliability and resulted in premature and unplanned maintenance.” It also said it was terminating a lucrative service contract with Boeing.

Norwegian said in addition to compensation it is also seeking the return of deposits it paid Boeing for the 97 jets.

Norwegian has 37 of the Dreamliners in its fleet, and 101 of an earlier version of the 737. But is been forced to ground all but eight of its planes from April through June because of a lack of air travel, especially on trans-Atlantic routes. Even with the restart of some international flights, it will bring only 12 additional planes back into service as of Wednesday.

Shares of Boeing (BA), which gained 14% in trading Monday on news of the FAA test flight, lost 6% in trading Tuesday on news from Norwegian.