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Cancellations Increasing for Boeing and Airbus

July 15, 2020
Declining deliveries and cancelled orders are revealing the scope of the pandemic's impact on commercial aerospace, as airlines and leasing firms adapt to an altered travel market.

The Boeing Co. issued its second-quarter 2020 report for aircraft deliveries, putting figures to the scope of the problem for aircraft builders since the outbreak of the COVID-19 pandemic. The virus has sundered air travel, forcing airlines to adjust their inventory and prompting numerous cancellations of previously ordered aircraft.

Boeing delivered just 20 aircraft during the second quarter: four 737s, one 747, four 767s, four 777s, and seven 787s. For the year to-date, Boeing has delivered just 70 aircraft. Airlines and aircraft leasing companies have canceled orders for 355 Boeing 737 MAX jets since January 2020, Boeing revealed, and 60 of those cancellations happened during June. This problem attributable to the ongoing trouble with the 737 MAX as well as changes in the demand forecast for airlines.

"Our commercial airplane deliveries in the second quarter reflect the significant impacts of the COVID-19 pandemic on our customers and our operations that included a shutdown of our commercial airplane production for several weeks," stated Greg Smith, Boeing EVP of Enterprise Operations and CFO.

Earlier this month Airbus SE reported its six-month 2020 deliveries totaled 196 aircraft, down from 389 deliveries during January-June 2019.

Airbus new orders for the first half totaled 365 aircraft, though it also took cancellations for 67 aircraft. During June, Airbus recorded no new orders for the second consecutive month.

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