Airbus Rockets Ahead with 27 New Plane Orders in May 2024 – Is demand soaring despite Boeing’s struggles?

Paris, France – Airbus and Boeing are currently experiencing a surge in demand for commercial airplanes. However, Boeing is facing challenges as it struggles to finalize orders, impacting its market position. In May 2024, Airbus recorded significant orders and deliveries, raising questions about how the company is capitalizing on Boeing’s difficulties. These developments also shed light on the overall health of the aerospace supply chain, indicating that a full recovery may still be years away.

During the month of May, Airbus secured 27 orders amounting to $2.7 billion. The orders included a mix of 20 widebody airplanes and seven single-aisle jets. Notable orders were placed by an undisclosed customer for 20 Airbus A330-900 aircraft, as well as Nordic Aviation Capital for seven Airbus A321neo airplanes. Additionally, there were several changes and mutations in the order book, such as order conversions and cancellations, reflecting fluctuations in demand and market dynamics.

Despite the highlight of the Airbus A330neo order, the overall order inflow was not as impressive, with only 20 net orders valued at $2.7 billion after factoring in cancellations. Comparisons with the previous year’s performance show that Airbus has seen an increase in net orders, indicating strong demand for commercial airplanes. However, challenges in the aerospace supply chain persist, as evidenced by fluctuations in delivery numbers and the impact on production levels.

In terms of deliveries, Airbus managed to deliver a total of 53 airplanes in May valued at $3.4 billion. This figure represented a decrease from the previous year, signaling potential strain in the supply chain. The reduction in deliveries was mainly attributed to specific airplane families, with the Airbus A320neo and Airbus A330neo families experiencing declines. Despite these challenges, Airbus remains optimistic about meeting its delivery targets for the year, albeit with awareness of the underlying supply chain issues.

The book-to-bill ratio for Airbus was 0.5x in terms of units and 0.8x in terms of value, highlighting the demand and production dynamics in the commercial aerospace sector. While Airbus continues to face challenges in the supply chain, it maintains a strong demand environment and a diversified product portfolio that appeals to customers.

In conclusion, Airbus is navigating through a complex landscape of market demands and supply chain challenges. While the company faces hurdles in meeting production targets, it remains buoyed by strong demand and a robust product portfolio. As the aerospace industry continues to evolve, Airbus must adapt to market dynamics while maintaining a focus on production efficiency and customer satisfaction.