Combined deliveries by Airbus and Boeing declined more than half during the first six months of 2020 to just 266 aircraft, compared with 2019. Meanwhile the overall order intake has collapsed into a negative tally, although this is driven by a raft of cancellations for the Boeing 737 Max.
Overall, first-half deliveries declined from 628 aircraft last year to 266 aircraft in 2020. The large fall has been caused predominantly by the coronavirus pandemic, but the ongoing suspension of 737 Max deliveries is also partly to blame.
|Airbus and Boeing deliveries and orders in the first half of 2020|
|Deliveries||Cancellations||Net orders||End H1|
|Airbus||H1 2020||H1 2019||H1 2020||H1 2020||Backlog|
Source: Manufacturers/FlightGlobal analysis
*Boeing data excludes 680 orders removed from backlog to comply with “ASC 606” accounting rules (626 737, 3 747, 17 777 and 34 787)
This reduces Boeing backlog to 4,552 aircraft. Data includes corporate and military versions
Airbus delivered 196 aircraft in the January-to-June period, compared with 389 in the same interval last year. Boeing shipments declined from 239 in the first half of 2019, to just 70 this year. Seattle’s January-June 2019 deliveries were already down on the planned level due to the suspension of the 737 Max in March last year.
From an orders perspective, Airbus again fared better than its rival, securing 298 orders, net of 67 cancellations. Last year, Airbus secured just 88 net orders in the first half, with 125 cancellations.
Boeing added 59 new firm orders (compared with 105 gross in 2019), but these were wiped out by the loss of 382 contracts from its backlog – 373 of which were for the Max. This put its 2020 six-month tally at -323 aircraft, driving the industry’s combined net-order total down to -25 aircraft.
However, Seattle’s pain is worsened by adjustments it has made to its backlog as part of ASC 606 accounting rules. Changes made during 2020 remove a further 461 orders from Boeing’s official backlog, including 439 737 Max contracts. Including adjustments applied prior to 2020, the overall ASC 606 change comprises 680 orders, of which 626 apply to the 737.
|Boeing first half 2020 orderbook adjustments|
|2020 ASC 606 Changes||-439||-3||-||-11||-8||-461|
The aircraft removed are still subject to contracted orders, but from customers whose current status has reduced Boeing’s confidence that they will be completed. Overall, Boeing has 680 orders from its backlog under the ASC 606 clause.
The industry’s firm order backlog at 30 June stood at 12,816 aircraft (excluding Boeing’s ASC adjustments). Airbus has the advantage, with a 59% market share – increasing to 61% if Boeing’s ASC adjustments are included.