Avianca is to reschedule the delivery of 35 Airbus A320neo aircraft, and has cancelled the delivery of another 17 A320neos.

Avianca has entered into an agreement with Airbus to reschedule the delivery of 35 A320neos – currently scheduled for delivery between 2020 and 2022. The 17 cancelled A320neos are associated with a purchase order signed in 2015.

Avianca said in a filing: “This agreement will reduce Avianca’s fleet CapEx needs by more than $350 million over the next three years and reduces financial commitments for the 2020-2022 period by more than $2.6 billion.”

The adjusted delivery schedule will slow down the speed of new aircraft incorporated into Avianca’s operating fleet, which the company says will enable it to “strengthen its cash position and reduce leverage.”

The adjustments take Avianca’s A320 family delivery schedule from 128 down to 111 up to 2028. According to the revised delivery schedule, Avianca will expect three aircraft in 2019, down from six.

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