Airlines are putting off jet deliveries amid coronavirus, depriving manufacturers and their suppliers of cash
Boeing Co. BA -4.20% and Airbus SE EADSY 1.03% are making planes that airlines aren’t collecting, straining their finances as the coronavirus pandemic wreaks havoc on travel and the aerospace industry.
Airlines in many cases say they don’t want the aircraft for now, because they are unable to fill them profitably during a historic plunge in demand for flying. Travel restrictions are also hindering employees of some airlines from getting to the U.S. and Europe to pick up planes from factories.
The result: finished airplanes with nowhere to fly, and less cash for Boeing, Airbus and their suppliers as they slash production and payrolls. Customers generally pay more than half the purchase price when they receive aircraft. Boeing delivered 20 aircraft in the second quarter, down from 90 in that period last year. It was the lowest quarterly total since 1963, the early part of the jet age, according to an analysis of Boeing delivery data.
Excerpt from WSJ
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