American Airlines has once again scaled back its summer schedule, citing Boeing's "continued inability to deliver" its 787-8 aircraft as the reason for the diminishment of its international flights. Previous delays in 787-8 deliveries had prompted earlier cuts in American's international schedule in 2022. American's finance chief Derek Kerr noted during an earnings call on 20 January that 13 787-8s were to arrive in 2022, but warned that manufacturing issues continue to affect production rates. "[We expect to] put four [787-8s] in the schedule this summer," Kerr said on 20 January. "As of today Boeing is on track." The US major now expects to receive from Boeing just 10 787-8s in 2022. The remaining three aircraft are now scheduled for delivery in 2023, American states in an 18 February US Securities and Exchange Commission filing. "We are taking a proactive approach to reduce the negative impact Boeing’s delays could have on our business and our customers," American says of its newly revised summer schedule. "Our 787-8 aircraft are an essential part of our fleet. And despite the ongoing delay, we still have tremendous confidence in the aircraft and will continue to work with Boeing on their delivery." The further delay in 787-8 deliveries has prompted American to push back the launch of its Dallas/Ft Worth-Tel Aviv route. The carrier will also temporarily suspend service on routes including Seattle-London Heathrow; Dallas/Ft Worth-Santiago, Chile; and Los Angeles-Sydney, Australia. Finally, American will reduce its Miami-Sao Paulo, Brazil route to a single daily service. "Further reducing our international flying this summer is a difficult decision, but ultimately, it’s the right one for our team members and customers," American says. "While we are disappointed in the continued delay of our 787-8 deliveries, we remain focused on running a reliable operation on our path to profitability by delivering for our customers the best global network." American has 46 787 jets in its current fleet and 43 on order. Boeing halted deliveries of 787s for most of 2021. The US Federal Aviation Administration has said it continues to work with the airframer both on quality inspections and re-work necessary to resolve manufacturing issues. No update has been provided when deliveries could resume.

SAS risks edging closer to bankruptcy unless it can restructure its elevated debt pile, according to a research note produced by Norway’s DNB Bank. DNB analyst Ole Martin Westgaard estimates in a research note published on 16 February that the Scandinavian carrier has available liquidity reserves of SKr5.6 billion ($600 million) consisting of SKr2.6 billion of cash and undrawn government guarantees of SKr3 billion. This compares with total debt of SKr40.5 billion at the end of the fourth quarter, which includes hybrid loans booked as equity. “The high debt seems unsustainable, and with SKr3.8 billion (excludes SKr2.8 billion of lease payments) of maturities due in the next 12 months, restructuring will surely be needed. In our view, this would need to address the too-high debt and uncompetitive cost position versus peers,” he states. The bank forecasts that SAS will report a SKr1.9 billion first-quarter loss on 22 February as a result of “low demand due to Covid, limited ability to adapt capacity, rising fuel prices and high financing costs due to elevated debt”. The bank reiterates its “sell” advice to investors and has cut its target price to reflect “reduced estimates and increased financial risk”. DNB says that while there is likely to be “significant pent-up demand” for travel as restrictions ease, it believes SAS’s “weak competitive position” makes it a target for low-cost carriers such as Ryanair. At the same time, the bank notes that fuel prices are up appreciably and SAS has no hedges in place. In a separate 16 February note, Sydbank analyst Jacob Pedersen says the Omicron variant has “derailed” traffic recovery and, together with stiff exchange-rate headwinds of some SKr800 million against the US dollar in the first quarter, will create a “massive” SAS deficit that reinforces the need for more strategic initiatives and an overhaul of the airline’s capital structure. He says SAS has unveiled some initiatives for its survival, including the establishment of new low-cost units. Pedersen adds that he looks forward to more concrete objectives for cost-saving initiatives. He warns that the Stockholm-based carrier’s book equity now consisting only of hybrid bonds, but says the company is not pressured for liquidity “here and now”. Pedersen suggests that new SAS chief executive Anko Van der Werff could be contemplating a rescue plan that may be accompanied by a capital increase. SAS’s share price has fallen more than 20% since the publication of the research notes.

Passenger stigma about flying on the Boeing 737 Max, which was involved in two fatal accidents in 2018 and 2019, has now “largely dissipated” and pilots are also confident in the aircraft, the executive chairman of Air Lease Corporation has said. “We have… been pleased with developments of the 737 Max in terms of performance and reliability since resumption of deliveries,” says Steven Udvar-Hazy during a 17 February earnings call. "Our airline customers have been giving us good reports. As such, it should be no surprise that lease rates on 737s are recovering, and the forward demand profile is robust. We believe that any passenger stigma has largely dissipated, and confidence has returned to the pilot community." Udvar-Hazy notes that ALC's deliveries of new Max orders span 2024 to 2026, a period during which he says Airbus is "virtually sold out on the single-aisle Neo programme". "So we believe that Air Lease is in an excellent position to be able to offer both Boeing and Airbus single-aisle solutions from our orderbook in those critical years ahead as the airline industry recovery accelerates strongly," he says. ALC recently announced it had secured long-term leases for 25 new 737 Max 8 jets with Malaysia Aircraft Group, parent of Malaysia Airlines Berhad. An additional benefit, Udvar-Hazy goes on to say in the earnings call, is that ALC’s forward Max lease programmes are not dependent on placement in Russia or China, which have yet to recertify the Max. Udvar-Hazy's comments came as the lessor reported net income available to common stockholders for the fourth quarter of 2021 of $142 million, up 32.7% on 2020’s fourth quarter. This was on fourth-quarter revenues of $597 million, up 22.1% on 2020’s corresponding quarter. For the full year ended 31 December 2021, ALC reported net income available to common stockholders of $408 million, down 18.6% on the year prior. Revenues rose 3% in 2021 to $2.09 billion.