Interest for airline orders from worldwide airlines has deteriorated, financing has “dried up” and airlines seem more likely to defer delivery of new aircraft they have on order, UBS analyst David Strauss said in a new research report.
UBS conducted a survey of worldwide airlines to gauge their ordering intentions and delivery expectations in a weak economy, the report said.
Thirty-eight percent of airlines surveyed said they are in order discussions or plan to be within the next year. It’s the lowest response in the company’s survey history, and 52 percent below the last survey, taken three months ago. Financing is more difficult to obtain. Only 45 percent of the airlines said they thought financing was currently available — down from 72 percent in the last survey.
Almost one-third of those surveyed said they were likely to delay delivery of aircraft they had on order, up from 8 percent in the last survey, the report said. One-third of them, however, said they would consider moving up their deliveries if earlier slots became open.
