Dublin-based aircraft leasing firm Avolon has today announced the cancellation of an additional 27 Boeing 737 MAX planes after cancelling 75 of the jets in April.
It also canceled one Airbus A330neo widebody jet, the fifth it has cancelled since the start of the Covid-19 crisis, and deferred the delivery of three A320neo aircraft until 2022.
The company said it has reduced it near-term commitments by over 140 aircraft since the start of the year as it grapples with the fall-out of the Covid-19 pandemic.
The MAX has been grounded since March 2019 after two fatal crashes in five months. However, Boeing and the US Federal Aviation Administration last week completed certification test flights, a key milestone toward the plane's return to service.
Rival lessor BOC Aviation last week said it had canceled an order for 30 MAX jets while Norwegian Air cancelled orders for 92.
Avolon, in a financial update at the end of the second quarter, said it still has in excess of $5 billion in liquidity.
It said it had reduced by one-third its capital commitments to the end of 2021 and since the start of the year had cut by more than half its 2020-23 capital commitments.
"These actions provide us with the capital strength to manage through this market backdrop and to support our customers through the recovery," Avolon's chief executive Dómhnal Slattery said in a statement.
He said the second quarter of 2020 was a challenging period for the aviation sector as Covid-19 impacted the industry on an unprecedented global scale, bringing with it continued uncertainty around the pace and timing of a recovery.
"The months ahead will be difficult, but we have the experience and balance sheet to manage through these headwinds," he added.