In 2016, I covered orders and deliveries for Boeing (NYSE:BA) and Airbus (OTCPK:EADSF) with monthly reports. In 2017, I will continue this coverage as it gives somewhat of an idea of current performance as well as an ability for the respective manufacturers to grow order books and possibly earnings in the future on healthy order books. Next to that the order inflow is in an almost direct reflection of the market environment on the commercial aircraft market. In this article, I will have a look at the orders and deliveries for the month February. The January report can be found here.
Figure 1: Orders February 2017 (Source: AeroAnalysis)
In January, Airbus booked four orders split between three wide-body aircraft and one narrow-body aircraft. February was a whole different month in which Airbus did not secure a single commercial aircraft contract.
While the first months of the year tend to be slow, I do think that a month in which Airbus does not secure a single order is telling about the current market conditions.
In fact, since I started writing the order and delivery reports there has not been a single month without no order inflow. I also cannot recall there being a month without orders for Airbus since I started writing for Seeking Alpha in 2013.
Looking at the cancellations in February, AeroAnalysis found that all cancellations for the Airbus A320 program can be attributed to cancellations for the A321 variant. The order for six Airbus A321neo aircraft was scrapped. From the same customer, TransAsia Airways, an order for four Airbus A330-800neos was scrapped.
The cancellations from TransAsia Airways should not come as a total surprise as the company ceased operations in November 2016 after two hull losses. The cancellations could have been announced at an earlier stage, but for Airbus as well as the airline it might be wise not to scrap the order in case of ceasing operations. For Airbus, scrapping the order means that it…