Max effect drags down overall sales and deliveries in 2019
January 16, 2020
Combined orders and deliveries across the two mainline OEMs plummeted in 2019 as the effect of the 737 Max grounding stymied Boeing’s single-aisle performance. The Boeing production hiatus also ensured Airbus became the new record holder for airliner production. Overall, net orders at Airbus and Boeing declined by 50% on 2018’s total, to 822 aircraft while total deliveries fell by more than a fifth to 1,243 units. With Max activity effectively in limbo for the last nine months of 2019, Boeing’s total net orders across all its products declined by more than 90% to 54 units while deliveries were halved to 380 aircraft. For reference, the manufacturer’s guidance a year ago was to deliver 895-905 aircraft in 2019. Boeing delivered just 57 Max aircraft in 2019, compared with 256 in 2018. Overall, 737 deliveries fell to 127 aircraft (from 580 in 2018). As the sun set on commercial 737NG production, Boeing shipped 70 aircraft. Max deliveries were suspended shortly after the Ethiopian Airlines accident on 10 March, and the grounding and ongoing crisis has blunted the airframer’s sales activities of the new 737 family. The Max net-order tally was significantly in the red, to the tune of 73 aircraft, as a result of cancellations. Airbus enjoyed a slight rise in net orders last year, to 768 aircraft from 747 in 2018. It also powered to a new industry production record – taking the honours from long-time holder Boeing, with a total of 863 deliveries. The previous record of 806 deliveries was set by Boeing in 2018. The US manufacturer dropped behind Airbus in delivery terms for the first time since 2011.

Source: Cirium

UK government reaches agreement to keep Flybe operating
January 15, 2020
The UK government has reached an agreement to keep regional airline Flybe operating. “Delighted that we have reached agreement with Flybe’s shareholders to keep the company operating, ensuring that UK regions remain connected,” said UK business secretary Andrea Leadsom on Twitter on the evening of 14 January. “This will be welcome news for Flybe’s staff, customers and creditors and we will continue the hard work to ensure a sustainable future.” Full details of the agreement were yet to emerge, but pilot union BALPA tweeted: “This is good news for 2,400 Flybe staff whose jobs are secured and regional communities who would have lost their air connectivity without Flybe. BALPA looks forward to discussing the airline’s future plans in detail with management.” Emergency talks between the government and Flybe’s owners – the Connect Airways consortium – were being held on 14 January amid indications the operator was seeking urgent funding.

Source: Cirium

Delta posts strong 2019 results with expanded global reach
January 15, 2020
Delta Air Lines posted strong full-year 2019 results, as passenger demand rose and the carrier benefitted from its rivals’ difficulties with the grounded aircraft. Delta’s full-year net income rose to $4.8 billion, up from $3.9 billion in 2018, while total revenue rose 7.5% to $47 billion from $44.4 billion a year earlier. In the fourth quarter, net income was up 9% to $1.1 billion. The company said it will be sharing its profits with its 90,000 employees, to the tune of a record $1.6 billion, up 23% from 2018. “As we enter 2020, demand for travel is healthy and our brand preference is growing, positioning Delta to deliver another year of strong results,” says chief executive Ed Bastian on 14 January. The company says first-quarter 2020 revenue is expected to rise another 5% to 7%. The Atlanta-based airline reported a 6% increase in passengers transported during the year, to 204 million, an all-time record and translating to a load factor of 86.3%. Delta is the only major US airline that does not have the Boeing 737 Max aircraft in its fleet, and thus, unlike its rivals, is not negatively affected by the aircraft’s grounding, now in its 11th month. The FAA has remained silent on when it will re-certificate the aircraft, and when it could return to regular passenger service. Several airlines have taken it out of their schedules into the second quarter. The Atlanta-based carrier has 217 737NG aircraft. “We have been watching the Max story for the last year,” Bastian says. “But we are not deviating on our plan based on news flow. We have a strong plan and to the extent that we pick up some marginal revenue – which we have – that’s great. We have clearly been a beneficiary as long as the Max stays out of the sky we will continue to be one.”

Source: Cirium


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