Boeing (BA) and Airbus (EADSY) tacked on a few more orders at the Paris Air Show Wednesday, following their big announcements on preceding days. Boeing stock fell near a buy point.
So far, “there was not much new in terms of orders” at the air show, Bank of America analyst Ronald Epstein wrote in a research note Wednesday. Major announcements, such as Boeing and Airbus’ Air India order, were previously announced, the analyst said.
Analysts at Third Bridge, a research firm, called new jet orders at the show “all but irrelevant” in the short to medium term. As supply-chain challenges persist, deliveries remain in focus, they said.
X
The planemakers, as well as their jet engine suppliers, RTX (RTX) and General Electric (GE), continue to highlight a strong demand outlook, offsetting production and certification issues.
India sat in the spotlight at the air show, which concludes Sunday. Flag carrier Air India and its budget rival IndiGo made headlines amid robust growth in that nation’s air travel market.
Boeing, Airbus Report Orders
On Wednesday, Boeing announced a total of eight new aircraft orders from India’s new Akasa Air, Air Lease (AL) and Luxair.
That followed news Tuesday that Air India has finalized a previously reported order for up to 290 new Boeing jets, including 737 Max jets and 787 Dreamliners. China Airlines also firmed up orders for eight 787 Dreamliners, while Algeria-based Air Algerie confirmed an order for eight Max 737 jets, the Dow Jones aviation giant said.
On Wednesday, Boeing’s European rival Airbus announced air leasing firm Avolon has signed a nonbinding agreement to order 20 A330neo aircraft.
Airbus said Tuesday that Air India has firmed up a prior order for 250 jets, including 210 A320/A321 narrowbodies and 40 A350 widebodies. The company also confirmed 25 A321 orders from ultra-low-cost Mexican airline Volaris.
On Monday, Airbus disclosed an order for 500 A320 narrow-body jets from IndiGo, the biggest commercial jet deal ever. A Reuters report back in March said India’s IndiGo was considering the Boeing 737 Max as an option after exclusively buying narrow-bodies from Airbus up to now.
Commercial aviation continues to gain pace after the severe pandemic hit to air travel. Boeing’s new 2023 Commercial Market Outlook, released Sunday, estimates that global airlines will require 42,595 new jets through 2042 — 1,425 more than it had predicted last year.
Boeing Stock
Boeing stock lost 0.4% to 211.60 on the stock market today, sliding for a second straight day. BA stock briefly topped a 221.33 buy point from a flat base last week but has struggled to progress.
Airbus shares fell 1.3% Wednesday, snapping several days of gains. EADSY stock recently cleared a 34.85 entry and is in buy range.
Challenging Aerospace Supply Chain
Plane-makers are racing to increase production to meet strong demand from airline customers. Their supply woes continue, including for Boeing and Airbus top sellers — the 737 Max and A320neo, respectively, both narrow-body jets.
Suppliers GE and RTX are working to fix durability problems with their respective Leap and GTF engines for those jets.
During the air show this week, GE and RTX highlighted improvements on the Leap and GTF programs. RTX also announced a rebranding from its earlier name, Raytheon Technologies.
Pratt & Whitney, a jet-engine unit of RTX, said it is seeing “solid progress” in the aerospace supply chain, Reuters reported Wednesday.
But the supply chain is stabilizing at “weak levels,” Bank of America analyst Epstein cautioned in his Wednesday note to clients.
The Covid-19 pandemic and Russia-Ukraine war caused major supply bottlenecks. Shortages of raw materials and labor remain a challenge.
GE stock rose 0.8% to 104.88 Wednesday after hitting a five-year high intraday Friday. RTX stock gained 1.3% to 98.93.
Spirit AeroSystems (SPR), which makes fuselages for the Boeing 737 Max, was roughly unchanged at 29.56. SPR stock tumbled 4.4% Tuesday.
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