Ridley Scott's Alien: Covenant was an improvement on Prometheus, but only just. Even so, the sequel made a little over $240 million, half the box-office take of its 2012 predecessor that wasn't even all that well liked. After this development, THR reported that 20th Century Fox decided to take a step back and "reassess" the entire Alien franchise, including Scott's two planned follow-ups to Covenant.
That being said, the immediately sequel to Covenant, Alien: Awakening (penned by John Logan), would really have brought the series full circle. Speaking to Empire Magazine for its definitive history of the sci-fi horror franchise, Scott stated that Michael Fassbender's creepy android, David, would be pursued by an angry band of surviving Engineers to LV-426, the planet we first saw in the 1979 original.
"We're gonna actually go to the planet," said Scott.
Presumably, things don't end too well for the Engineers and their chests are ripped open by xenomorphs, resulting in the mysterious "space jockey" and crashed ship full of facehugger eggs discovered by the crew of the Nostromo in the first movie.
In Covenant, it was revealed that David murdered all the Engineers — architects of sentient life across the galaxy, including Earth's — on their homeworld (we guess he missed a few) by using their own biological weapons against them. After that, he spent years of solitude gruesomely experimenting on Elizabeth Shaw (Noomi Rapace) and developing the perfect organism, our beloved xenomorph.
By the end of Covenant, David has an entire ship full of human subjects that he can impregnate, regurgitating two facehugger embryos and storing them on ice right next to a number of human embryos that will, unfortunately, never turn into people.
With Fox's aforementioned "reassessment" and the impending Disney merger, odds are good we'll probably never see David's final standoff with the Engineers or the Alien franchise close the loop after almost 40 years.