June orders boosted the firm engine order book.
There were orders for 584 engines in June, the largest monthly intake since November 2019. While most of the orders were for single-aisle engines, they provided the first increase in the firm engine order book since January last year and the third largest monthly increase (out of four) in the last two years. June also had the second largest number of engine installs in the last 18 months.
The size of the June order intake was something of a surprise. There were some fairly large engine orders in February and March but the monthly intake dropped back in April and May. The, in June, there were orders for 544 single-aisle engines and 40 widebody engines. CFM took orders for 540 LEAP engines in the month, 140 LEAP-1A for the A321neo and 400 LEAP-1B for the 737 MAX. It was the largest LEAP order in a single month since October 2019 and CFM’s firm order book went up by 286 engines in June alone. The LEAP programme has taken orders for 1,166 engines so far this year, three quarters of all single-aisle engines and two thirds of the total engine order intake.
The widebody engine order intake during the month, 40 engines, was not particularly impressive though it was the second largest monthly intake of the past year. The largest monthly widebody intake in that period was 90, in February. There was an order for two Trent 700s in June, the first order for that program since December 2018. So far this year there have been orders for 190 widebody engines, 60 more than in the First Half of last year but 200 fewer than by the end of June 2019.
Cancellations continue to blight the engine manufacturers. So far this year 1,014 single-aisle engines and 68 widebody engine orders have been cancelled. The net order intake at the end of June was 658 made up of 536 single-aisle engines and 122 widebody engines. In the whole of last year over 1,500 engines came off the books due to cancellations. There have been far more single-aisle engine cancellations this year than in the First Half of last year (when there were 804) but only two more widebody engine cancellations.
The June order intake pushed the number of engines on firm order up by 184; the first increase since January last year. The single-aisle engine order book increased by 196 in June (also the first increase since January last year) but the widebody engine order book which has only increase three times in the last two years dropped again, for the fourth consecutive month. The number of widebody engines on firm order is now the lowest in well over 10 years, if not much longer. (At the end of June 2011 there were 4,752 widebody engines on firm order, over 1,300 more than there are now.)
The number of single-aisle engines on firm order at the end of June was slightly down on the figure at the start of this year but the drop of less than one percent will not be of the slightest concern to the engine manufacturers. However, the current single-aisle figure is 1,090 engines lower (4.8%) than at the end of June last year and 994 engines lower (4.4%) than at the end of June 2019. There were slightly more single-aisle engines on firm order at the end of June last year than at the end of June 2019.
What will be particularly encouraging for the industry is the improvement in engine install numbers. There have been 914 engine installs this year, 380 more than in the First Half of last year. There have been 388 more single-aisle engine installs but eight fewer widebody engine installs. There were 246 new engine installs in June, the second largest number for a single month since December 2019. This was made up of 194 single-aisle engine installs and 52 widebody engine installs. The single-aisle figure is the largest for the month of June since 2018 and the second largest for a single month since December 2019. The widebody engine install total in June was double the total in June of last year but well below the figure in June 2019. It was also the second lowest for the month of June (after last year) in the last 10 years.