BA - Boeing and Airbus Hit With $3 Billion Blow
Singapore Airlines (OTC: SINGY) will defer S$4 billion ($3 billion) in aircraft purchases and other capital expenditures, a fresh indication of the lasting impact the COVID-19 pandemic will have on airlines and the aerospace manufacturers that rely on them.
The decision will reshuffle the order books of Boeing (NYSE: BA) and Airbus (OTC: EADSY) , and shows why it is dangerous for investors to count on airplane order backlogs to judge the near-term health of these businesses. Until recently, Singapore had been among the world's fastest growing airlines, and a key customer for larger, international-focused planes.
But Singapore, like most airlines, is now retrenching, and doesn't see demand returning any time soon.
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Boeing and Airbus Hit With $3 Billion Blow