COVID-19 Holds Back Q1 Aircraft Deliveries As Industry Revises Forecasts
COVID-19 impact on aerospace manufacturers sees Q1 2020 record lowest January to March deliveries as customers defer and delay.
- Support put in place by Government is helping protect manufacturing jobs during the crisis, and a coordinated approach to recovery will be needed to sustain high-value jobs and restart investment.
- ADS 2020 delivery forecast suspended until there is greater certainty around planned production.
As economies around the world continue shutdowns to restrict the spread of COVID-19, global aerospace manufacturers are feeling the effect with slowdowns in deliveries for the first quarter of 2020.
Aircraft delivery figures for Q1 2020 were the lowest first quarter on record as the crisis prevented planned deliveries from being made. The first three months of 2020 saw a 44.7% fall in deliveries from the same period in 2019, with 172 deliveries in January to March. Aircraft orders in March started to see the impact of COVID-19 with a 10% year on year decline from 2019. A strong month for orders in January before the effects of the crisis were felt means Q1 orders overall reached 405. However, with production rates and airline demand slowing, the continuing effects of the crisis will be clearer in Q2.
UK Government support is in place to protect industry jobs during the lockdown period, including through the Coronavirus Job Retention Scheme and the Coronavirus Business Interruption Loan Scheme. In addition to this, many aerospace manufacturing sites have repurposed their production to help make PPE and ventilators for the NHS.
ADS Chief Executive, Paul Everitt said:
“The UK aviation and aerospace industries are experiencing some of the severest impacts of the COVID-19 crisis.
“The UK Government has announced welcome support measures to help businesses through this challenging time, supporting industries that will be vital to the future prosperity of people in all parts of the country.
“When the crisis begins to recede, there must be an internationally coordinated approach taken to lifting travel restrictions, boosting consumer confidence and ensuring a strong recovery for UK aviation and aerospace manufacturing.”