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Birmingham Post
Birmingham Post
Business
Hannah Baker

Coronavirus: aircraft demand plummets to record low as travel industry blighted by pandemic

Commercial aircraft orders fell to a record low last month as the Covid-19 pandemic continues to blight the travel industry.

Just nine plane orders and 52 deliveries were made in August - the lowest for the month on record - according to aerospace trade body ADS.

The figure is a 59 per cent decline for the same month last year and a 91.3 per cent drop since 2018.

Altogether, only 123 orders have been placed since the start of the crisis in March.

ADS said the numbers reflected a “challenging” six months for the global aviation and aerospace sector.

The news comes as aerospace giant Rolls-Royce considers tapping investors for funding reportedly up to £2.5billion, while Airbus is looking at how Chancellor Rishi Sunak's Job Support Scheme can help UK operations.

ADS Chief Executive Paul Everitt said: “The aerospace industry in the UK and around the world is feeling the effect of travel restrictions and 2020 is set for the lowest number of global aircraft deliveries in more than a decade.

“Aircraft manufacturing employs more than 110,000 people in the UK. The industry is looking to the Government to act urgently to develop and reform its quarantine policy, using testing to reduce the period air travellers need to isolate after arrival in the UK.

“A full restart for aviation is the only way to ensure the future of the UK’s highly skilled and innovative aerospace sector, and will be an essential component of our national economic recovery.”

The total backlog orders for aircraft stood at 13,518 for August 2020 - a further two per cent decline on the same time last year - due to low order volumes and cancellations.

It is a fall from a peak of more than 14,300 seen at the end of 2018.

However, the remaining aircraft backlog is estimated to be seven years’ worth of work and worth up to an estimated £206billion to the UK, ADS added.

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