Airbus SE (EPA: AIR) is intensifying the competition with Boeing by securing significant new orders at the Farnborough Airshow.
On Tuesday, the aerospace giant announced substantial deals with Japan Airlines and Virgin Atlantic, signaling a strong demand for its aircraft despite a perceived slowdown in the post-pandemic travel boom.
How many planes did Japan Airlines and Virgin Atlantic order?
Japan Airlines placed a substantial order for Airbus, requesting 20 A350-900s and 11 A321neos, with the total estimated value exceeding $3 billion, according to Cirium Ascend.
Meanwhile, Virgin Atlantic committed to seven A330-900s, marking a deal worth over $807 million. Once delivered, Virgin Atlantic’s fleet will expand to 19 A330neos.
These announcements come at a time when the aviation industry is navigating challenges such as delivery delays and a backlog of orders.
Last month, Airbus delivered 67 aircraft to 40 customers, a decrease from the 72 aircraft delivered to 48 customers in June 2023.
The delay in deliveries has contributed to a 20% drop in Airbus’s stock over the past four months.
Qatar Airways may place a sizable order with Airbus
The Farnborough Airshow also brought news of potential future orders.
Qatar Airways CEO Badr al Meer hinted that the airline is considering a “sizable” order for wide-body aircraft, expected either in the final quarter of this year or the first quarter of 2025.
Additionally, Qatar Airways plans to extend the operational life of its A380s and enhance their amenities with new WiFi capabilities.
This announcement follows Airbus’s first-quarter financial results, where the company fell short of operating profit and cash flow expectations but maintained its financial targets for 2024.
Airbus CEO Guillaume Faury noted that despite the challenges, the company’s solid order intake and the strong demand for wide-body aircraft support its decision to increase the A350 production rate to 12 aircraft per month by 2028.
In response to these developments, Wall Street has maintained a “buy” rating on Airbus stock, reflecting confidence in the company’s strategic direction and market position.
The recent orders and anticipated deals underscore the ongoing competition between Airbus and Boeing, highlighting Airbus’s ability to secure significant contracts and adapt to the evolving needs of the global aviation market.
As airlines continue to modernize their fleets, Airbus’s performance in the coming months will be closely watched for further indications of its market strength and operational efficiency.
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