Aircraft leasing giant AerCap has cancelled orders for 15 of Boeing’s grounded 737 Max.
AerCap has already taken delivery of five of the Max jets and has orders still in place for another 80.
AerCap owns a fleet of 1357 aircraft.
Boeing’s 737 Max aircraft was grounded by aviation authorities in March 2019 following two fatal accidents and production of the plane was temporarily suspended by Boeing in January this year.
AerCap said it reached agreement with Boeing this month to restructure its order book for 737 MAX aircraft, cancelling 15 orders.
Where AerCap customers have the right to cancel leases for the controversial airplanes, AerCap said in cases where lessees have the right to cancel leases it had the right to cancel the corresponding orders for delivery of those aircraft.
AerCap recorded a decline in income in the second-quarter of the year to $246m from $331m in the same period a year earlier, hit by the global travel slump as a result of Covid 19 including the impact of airline bankruptcies.
Analysts at Davy said AerCap’s results show it has weathered the disruption to the global travel industry this year.
“The liquidity and leverage positions are also healthy and indicative of AerCap’s staying power in difficult conditions,” they said in a note.
AerCap said it does not yet know when the five 737 MAX planes it has taken delivery of will return to service, and said the uncertainty around the Boeings will continue to be a financial drain.
AerCap CEO Aengus Kelly told analysts he expects aircraft manufacturing to slow amid the slump in global travel a result of the pandemic.
“I think we’ll see more production cuts both from Boeing and Airbus, to help us get to that equilibrium,” he said during an earnings call with analysts.