With travel restrictions to curb the spread of COVID-19 in place, demand for new aircraft has ground to a halt. Approximately 62% of the world's airplanes are currently grounded. Lower production of new aircraft has led to lower demand for aircraft engines and engine parts.
The fall in passenger revenue has prompted airlines to put deliveries on hold and some aircraft manufacturers have paused production entirely or suspended production of certain types of aircraft. Airbus announced new production rates of 40 a month for the A320 model and 2 and 6 per month respectively for its A330s and A350s while Boeing announced that it would suspend production as its Puget Sound facilities as well as pausing production of the 787 Dreamliner.
Aircraft engine manufacturers are responding to the lower demand by decreasing production, furloughing workers and moving to the production of critical medical equipment such as ventilator components. The aircraft engines industry is likely to see demand for replacement parts for the maintenance of idle planes as airlines try to keep their fleet in flight ready condition. Demand for cargo aircraft engines and components may continue as cargo flights are still operating.
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