July marks another record low for aircraft orders and deliveries
- 53 aircraft deliveries and four aircraft orders mark the lowest July on record for both
- Aircraft deliveries are marginally increasing each month but the lowest January-July on record for deliveries reflects the challenges the industry continues to face
- Further Government support needed to ensure a rapid recovery and lay the foundations for long-term, sustainable growth.
Commercial aircraft orders and deliveries for July 2020 reflect the ongoing challenges faced by the global aerospace industry as it looks to recover from the impacts of the COVID-19 pandemic. With just four aircraft orders, all single-aisle and no wide-body aircraft, it was the lowest July on record, a 94 per cent decrease from July 2019. No wide-body aircraft orders reflect the current aviation climate with continued consumer uncertainty and less demand for long haul air travel.
Aircraft deliveries continue to be impacted by deferrals with just 53 deliveries in July making it the lowest for the month on record and a 40 per cent decrease on July 2019. Single-aisle aircraft deliveries are steadily increasing since the lowest point in April, with 49 aircraft delivered in July. Wide-body aircraft suffered a marginal decrease on the previous month with only four aircraft delivered.
The aircraft firm order backlog has seen another marginal decrease as deliveries outweigh orders but staying at a comfortable 13,581 aircraft. The remaining order backlog represents many years’ worth of work for global aerospace manufacturers and potentially up to £207.5 billion to UK industry.
ADS Chief Executive Paul Everitt said:
“July was another record low for the aerospace industry in both aircraft orders and deliveries, marking the sharp and sustained reduction in demand.
“The aerospace industry needs further support from the Government to secure its future and return to long-term sustainable growth. The Comprehensive Spending Review and Autumn Budget must put in place a bold plan for economic recovery.
“Government should back a dedicated long-term supply chain investment fund to support SMEs, deliver on the UK’s ‘jet-zero’ ambitions through doubling funding for the Aerospace Technology Institute and investing in Sustainable Aviation Fuels, and ensure direct support is provided to protect jobs and retain skills in sectors such as aerospace which are worse hit.”